XLY pushes through key technical resistance level
Consumer Discret Sel Sect SPDR ETF (XLY) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XLY ended Wednesday at 109.70 gaining $0.73 (0.67%). Today's close at 109.70 marks the highest recorded closing price since December 3, 2018.
Daily Candlestick Chart (XLY as at Feb 13, 2019):
Wednesday's trading range has been $0.79 (0.72%), that's below the last trading month's daily average range of $1.20. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for XLY.
Buyers managed to take out the key technical resistance level at 109.47 (now S1), which is likely to act as support going forward. The last time this happened on January 24th, XLY gained 1.11% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to December's high at 110.60 we might see further upside momentum if potential buy stops at the level get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for XLY. Out of 234 times, XLY closed higher 58.12% 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 58.55% with an average market move of 0.62%.