XYL closes higher for the 3rd day in a row
Xylem Inc. New (XYL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XYL ended Thursday at 68.01 gaining $4.15 (6.5%) on low volume, slightly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 66.16, the share confirmed its breakout through the previous session high after trading up to $2.41 above it intraday.
Daily Candlestick Chart (XYL as at Mar 26, 2020):
Thursday's trading range has been $4.94 (7.64%), that's slightly below the last trading month's daily average range of $5.11. 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 notably higher than usual for XYL.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, XYL gained 3.00% on the following trading day.
Though the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 71.85 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Xylem. Out of 136 times, XYL closed higher 55.88% 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 58.82% with an average market move of 0.66%.