XYL pushes through key technical resistance level
Xylem Inc. New (XYL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
XYL finished the week 4.68% higher at 88.14 after gaining $1.09 (1.25%) today, strongly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (XYL as at Feb 14, 2020):
Friday's trading range has been $1.53 (1.75%), that's slightly below the last trading month's daily average range of $1.70. 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 XYL. Prices continued to consolidate within a tight trading range between 86.74 and 89.34 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, XYL gained 2.17% on the following trading day.
Buyers managed to take out the key technical resistance level at 87.70 (now S1), which is likely to act as support going forward. The market found buyers again today around 86.99 for the third trading day in a row after having found demand at 86.87 in the prior session and at 86.74 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 89.34 where further buy stops could get activated.
Among the six 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 Xylem. Out of 212 times, XYL closed higher 55.19% 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 57.55% with an average market move of 0.54%.