XLU closes above its opening price after recovering from early selling pressure
Utilities Select Sector SPDR Fund (XLU) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, XLU finished the month -5.46% lower at 56.43 after gaining $0.21 (0.37%) today. Trading up to $0.33 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 56.25, the market confirmed its breakout through the previous session high after trading up to $0.49 above it intraday.
Daily Candlestick Chart (XLU as at Jun 30, 2020):
Tuesday's trading range has been $0.84 (1.49%), that's far below the last trading month's daily average range of $1.49. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XLU. Prices continued to consolidate within a tight trading range between 54.81 and 56.82 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on May 20th, XLU lost -1.01% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling might move prices lower should the market test May's close-by low at 53.66.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for XLU. Out of 210 times, XLU closed higher 60.95% 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 62.38% with an average market move of 0.49%.