XYL breaks below Thursday's low
Xylem Inc. New (XYL) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
XYL finished the week 4.2% higher at 70.88 after losing $0.68 (-0.95%) today, slightly underperforming the S&P 500 (-0.92%). Closing below Thursday's low at 71.08, the stock confirmed its breakout through the previous session low after trading up to $1.16 below it intraday.
Daily Candlestick Chart (XYL as at Nov 09, 2018):
Friday's trading range has been $1.39 (1.95%), that's below the last trading month's daily average range of $1.96. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for XYL.
Prices are trading close to the key technical resistance level at 72.10 (R1).
Xylem shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the close-by swing high at 72.18 where further buy stops could get activated.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Xylem. Out of 256 times, XYL closed higher 54.30% 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 61.72% with an average market move of 0.83%.