XLU closes higher for the 3rd day in a row
Utilities Select Sector SPDR Fund (XLU) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XLU finished Thursday at 55.38 gaining $4.35 (8.52%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 53.17, the ETF confirmed its breakout through the previous session high after trading up to $2.80 above it intraday.
Daily Candlestick Chart (XLU as at Mar 26, 2020):
Thursday's trading range has been $4.91 (9.52%), that's far above the last trading month's daily average range of $3.73. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for XLU.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, XLU gained 2.55% on the following trading day.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 58.15 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for XLU. Out of 741 times, XLU closed higher 57.35% 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 56.68% with an average market move of 0.23%.