XLRE dominated by bulls lifting the market higher throughout the day
Real Estate Select Sector SPDR (XLRE) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, XLRE ended the week 4.86% higher at 41.88 after surging $0.48 (1.16%) today ahead of tomorrow's Presidents' Day market holiday. Today's close at 41.88 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (XLRE as at Feb 14, 2020):
Friday's trading range has been $0.45 (1.08%), that's slightly above the last trading month's daily average range of $0.41. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for XLRE.
One bullish candlestick pattern matches today's price action, the White Candle.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 40.11.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "7 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for XLRE. Out of 5 times, XLRE closed lower 80.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 60.00% with an average market move of -0.89%.