XOP finds buyers again around 45.33
SPDR S&P Oil & Gas Exploration & Production ETF (XOP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
XOP finished Wednesday at 47.45 surging $2.22 (4.91%) on high volume. This is the biggest single-day gain in over a month. Closing above Tuesday's high at 46.23, XOP ETF confirmed its breakout through the previous session high after trading up to $2.12 above it intraday.
Daily Candlestick Chart (XOP as at Sep 16, 2020):
Wednesday's trading range has been $3.02 (6.6%), that's far above the last trading month's daily average range of $1.57. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XOP.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 47.19 (now S1), which is likely to act as support going forward. After having been unable to move lower than 45.11 in the prior session, the market found buyers again around the same price level today at 45.33. The last time this happened on September 9th, XOP actually lost -5.63% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the six 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 XOP ETF. Out of 390 times, XOP closed higher 51.54% 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 nine trading days, showing a win rate of 52.56% with an average market move of 0.21%.