XLRE pops to highest close since June 9th
Real Estate Select Sector SPDR (XLRE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XLRE finished Wednesday at 37.14 gaining $0.24 (0.65%). Today's close at 37.14 marks the highest recorded closing price since June 9th. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (XLRE as at Sep 16, 2020):
Wednesday's trading range has been $0.55 (1.48%), that's slightly below the last trading month's daily average range of $0.66. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XLRE.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star. The last time a Bullish Spinning Top showed up on September 1st, XLRE gained 2.24% on the following trading day.
Unable to break through the key technical resistance level at 37.20 (R1), the ETF closed below it after spiking up to 37.51 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
Crossing above the upper Bollinger Band for the first time since September 2nd, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 36.17 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for XLRE. Out of 20 times, XLRE closed higher 75.00% 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 two trading days, showing a win rate of 60.00% with an average market move of 0.01%.