XLU closes within prior day's range
Utilities Select Sector SPDR Fund (XLU) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
XLU finished Wednesday at 60.06 edging lower $0.08 (-0.13%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (XLU as at Sep 16, 2020):
Wednesday's trading range has been $0.81 (1.35%), that's slightly below the last trading month's daily average range of $0.98. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XLU.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading as low as 59.67 during the day, the ETF found support at the 50-day moving average at 59.68. Prices are trading close to the key technical resistance level at 60.86 (R1). After having been unable to move lower than 59.82 in the prior session, the market found buyers again around the same price level today at 59.67. The last time this happened on September 8th, XLU gained 1.32% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 61.03 where further buy stops could get triggered. As prices are trading close to September's high at 61.04, upside momentum might speed up should XLU mark new highs for the month.
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 213 times, XLU closed higher 61.03% 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 61.97% with an average market move of 0.48%.