XLV pushes through Wednesday's high
Health Care Select Sector SPDR ETF (XLV) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XLV finished Thursday at 86.85 gaining $5.41 (6.64%) on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 84.09, the market confirmed its breakout through the prior session high after trading up to $3.22 above it intraday.
Daily Candlestick Chart (XLV as at Mar 26, 2020):
Thursday's trading range has been $5.30 (6.45%), that's above the last trading month's daily average range of $4.52. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for XLV.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, XLV gained 1.33% on the following trading day.
Prices are trading close to the key technical resistance level at 89.98 (R1).
Though the ETF 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 accelerate should prices move above the nearby swing high at 87.55 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for XLV. Out of 414 times, XLV closed higher 53.14% 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 62.32% with an average market move of 0.49%.