XLP closes higher for the 2nd day in a row
Consumer Staples Select Sector SPDR Fund (XLP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, XLP finished the month -1.0% lower at 58.64 after gaining $0.43 (0.74%) today on low volume. Closing above Monday's high at 58.32, the ETF confirmed its breakout through the prior session high after trading up to $0.54 above it intraday.
Daily Candlestick Chart (XLP as at Jun 30, 2020):
Tuesday's trading range has been $0.73 (1.25%), that's slightly below the last trading month's daily average range of $0.94. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XLP.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 3rd, XLP lost -0.48% on the following trading day.
The market managed to close back above the 100-day moving average at 58.58 for the first time since June 23rd.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for XLP. Out of 112 times, XLP closed higher 56.25% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.71% with an average market move of 0.34%.