XLRE dominated by bulls lifting the market higher throughout the day
Real Estate Select Sector SPDR (XLRE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XLRE ended Thursday at 31.13 gaining $2.22 (7.68%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 30.43, the market confirmed its breakout through the previous session high after trading up to $0.83 above it intraday.
Daily Candlestick Chart (XLRE as at Mar 26, 2020):
Thursday's trading range has been $2.30 (7.89%), that's slightly above the last trading month's daily average range of $2.20. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for XLRE.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 29.43 (now S1), which is likely to act as support going forward. The last time this happened on March 10th, XLRE actually lost -5.36% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for XLRE. Out of 128 times, XLRE closed higher 57.81% 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 three trading days, showing a win rate of 56.25% with an average market move of 0.02%.