XYL rises to highest close since March 4th
Xylem Inc. New (XYL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, XYL ended Wednesday at 85.21 gaining $0.80 (0.95%) on high volume, significantly outperforming the S&P 500 (-0.46%). Today's close at 85.21 marks the highest recorded closing price since March 4th. 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 Sep 16, 2020):
Wednesday's trading range has been $3.76 (4.44%), that's far above the last trading month's daily average range of $1.95. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XYL.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star. The last time a Bullish Spinning Top showed up on August 27th, XYL gained 0.95% on the following trading day.
After trading down to 83.88 earlier during the day, Xylem bounced off the key technical support level at 83.92 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move lower than 84.07 in the previous session, the share found buyers again around the same price level today at 83.88.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Xylem. Out of 370 times, XYL closed higher 52.16% 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 60.00% with an average market move of 0.67%.