GWW breaks back above 20-day moving average
W.W. Grainger Inc. (GWW) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GWW finished the month 1.47% higher at 314.16 after surging $10.69 (3.52%) today on high volume, significantly outperforming the S&P 500 (1.54%). This is the biggest single-day gain in over a month. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 305.41, the stock confirmed its breakout through the previous session high after trading up to $10.53 above it intraday.
Daily Candlestick Chart (GWW as at Jun 30, 2020):
Tuesday's trading range has been $11.88 (3.9%), that's far above the last trading month's daily average range of $7.89. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GWW.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 20-day moving average at 308.99 for the first time since June 16th. When this moving average was crossed above the last time on June 16th, GWW actually lost -0.13% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for W. W. Grainger. Out of 139 times, GWW closed higher 56.83% 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 59.71% with an average market move of 1.53%.