GWW closes within prior day's range
W.W. Grainger Inc. (GWW) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GWW finished Wednesday at 356.71 gaining $2.06 (0.58%), strongly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GWW as at Sep 16, 2020):
Wednesday's trading range has been $6.71 (1.86%), that's slightly below the last trading month's daily average range of $7.29. Weekly volatility is also lower, being slightly 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 350.46 and 362.80 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Monday, GWW actually gained 0.09% on the following trading day.
Though W. W. Grainger is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the nearby swing high at 363.42 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 350.46 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for W. W. Grainger. Out of 694 times, GWW closed higher 54.32% 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 54.03% with an average market move of 0.65%.