HWC closes below its opening price unable to hold early session gains
Hancock Whitney Corporation (HWC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
HWC finished the week 16.98% higher at 19.29 after edging lower $0.02 (-0.1%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading $0.27 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (HWC as at May 22, 2020):
Friday's trading range has been $0.73 (3.75%), that's far below the last trading month's daily average range of $1.30. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HWC. Prices continued to consolidate within a tight trading range between 18.30 and 19.74 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on May 15th, HWC actually gained 14.25% on the following trading day.
Prices are trading close to the key technical support level at 18.79 (S1). After having been unable to move above 19.61 in the previous session, Hancock Whitney ran into sellers again around the same price level today, failing to move higher than 19.74.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 20.37 where further buy stops could get triggered. As prices are trading close to May's high at 21.40, upside momentum might speed up should the share mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Hancock Whitney. Out of 218 times, HWC closed higher 58.72% of the time on the next trading day after the market condition occurred.