XYL breaks below 200-day moving average for the first time since July 14th
Xylem Inc. New (XYL) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, XYL finished the month 12.35% higher at 72.98 after losing $1.69 (-2.26%) today, notably underperforming the S&P 500 (0.77%). Closing below Thursday's low at 73.20, Xylem confirmed its breakout through the previous session low after trading up to $1.33 below it intraday.
Daily Candlestick Chart (XYL as at Jul 31, 2020):
Friday's trading range has been $2.85 (3.85%), that's far above the last trading month's daily average range of $1.87. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XYL.
After trading as low as 71.87 during the day, the share found support at the 20-day moving average at 72.15. The market closed below the 200-day moving average at 73.81 for the first time since July 14th. When this moving average was crossed below the last time on March 9th, XYL actually gained 1.12% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Xylem. Out of 39 times, XYL closed higher 61.54% 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 10 trading days, showing a win rate of 66.67% with an average market move of 0.77%.