XLY closes higher for the 3rd day in a row
Consumer Discret Sel Sect SPDR ETF (XLY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XLY finished Thursday at 101.45 gaining $4.03 (4.14%) on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 101.07, the ETF confirmed its breakout through the previous session high after trading up to $0.97 above it intraday.
Daily Candlestick Chart (XLY as at Mar 26, 2020):
Thursday's trading range has been $4.03 (4.09%), that's below the last trading month's daily average range of $5.69. 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 higher than usual for XLY.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 103.50 (R1). After having been unable to move above 101.07 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 102.04. The last time this happened on March 17th, XLY lost -5.74% on the following trading day.
While XLY is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for XLY. Out of 119 times, XLY closed higher 65.55% 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 61.34% with an average market move of 0.41%.