XYL closes above its opening price after recovering from early selling pressure
Xylem Inc. New (XYL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
XYL finished the week 6.93% higher at 62.22 after edging higher $0.25 (0.4%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.41 lower after the open, Xylem managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 11th, XYL actually lost -5.53% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (XYL as at May 22, 2020):
Friday's trading range has been $0.75 (1.21%), that's far below the last trading month's daily average range of $2.18. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XYL. Prices continued to consolidate within a tight trading range between 59.85 and 62.95 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 62.79 (R1). After having been unable to move lower than 61.72 in the prior session, the market found buyers again around the same price level today at 61.50.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 62.95 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Xylem. Out of 632 times, XYL closed higher 51.90% 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 58.70% with an average market move of 0.54%.