GWW climbs to highest close since January 13th
W.W. Grainger Inc. (GWW) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
GWW ended the month 8.71% higher at 341.53 after gaining $1.74 (0.51%) today, slightly underperforming the S&P 500 (0.77%). Today's close at 341.53 marks the highest recorded closing price since January 13th. Trading up to $5.03 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 340.48, W. W. Grainger confirmed its breakout through the prior session high after trading up to $1.24 above it intraday.
Daily Candlestick Chart (GWW as at Jul 31, 2020):
Friday's trading range has been $6.56 (1.93%), that's slightly below the last trading month's daily average range of $8.00. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GWW. Prices continued to consolidate within a tight trading range between 333.10 and 346.11 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After trading down to 335.16 earlier during the day, the market bounced off the key technical support level at 337.91 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on July 23rd, GWW gained 0.81% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 343.18 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 333.10 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for W. W. Grainger. Out of 689 times, GWW closed higher 53.99% 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 53.85% with an average market move of 0.63%.