GWW finds buyers again around 304.18
W.W. Grainger Inc. (GWW) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
GWW finished the week 2.65% higher at 307.65 after gaining $2.29 (0.75%) today on low volume, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GWW as at Feb 14, 2020):
Friday's trading range has been $3.75 (1.23%), that's far below the last trading month's daily average range of $6.82. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GWW. Prices continued to consolidate within a tight trading range between 304.18 and 312.27 where it has been caught now for the last three trading days.
After moving lower in the prior session, the stock managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on December 31, 2019, GWW gained 1.83% on the following trading day.
Prices are trading close to the key technical resistance level at 309.26 (R1). After having been unable to move lower than 305.24 in the prior session, the share found buyers again around the same price level today at 304.18.
W. W. Grainger shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the close-by swing high at 312.27 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for W. W. Grainger. Out of 51 times, GWW closed higher 58.82% of the time on the next trading day after the market condition occurred.