XLV closes within previous day's range after lackluster session
Health Care Select Sector SPDR ETF (XLV) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
XLV ended the week 0.86% higher at 103.93 after gaining $0.08 (0.08%) today on low volume ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (XLV as at Feb 14, 2020):
Friday's trading range has been $0.58 (0.56%), that's below the last trading month's daily average range of $0.99. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XLV.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Hanging Man showed up on January 16th, XLV lost 0.00% on the following trading day.
Prices are trading close to the key technical resistance level at 104.21 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 104.84 where further buy stops could get triggered. With prices trading close to this year's high at 105.08, upside momentum might accelerate should the market be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for XLV. Out of 201 times, XLV closed higher 55.72% 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 57.21% with an average market move of 0.39%.