NWL closes below its opening price unable to hold early session gains
Newell Brands Inc. (NWL) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NWL ended Wednesday at 21.65 edging higher $0.09 (0.42%), slightly outperforming the S&P 500 (0.3%). Trading $0.38 higher after the open, Newell Brands 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 (NWL as at Feb 13, 2019):
Wednesday's trading range has been $0.47 (2.17%), that's below the last trading month's daily average range of $0.63. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NWL.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns.
Unable to break through the key technical resistance level at 21.97 (R1), the share closed below it after spiking up to 22.06 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on January 23rd, NWL actually gained 3.30% on the following trading day.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Its common bearish interpretation has been confirmed for Newell Brands. Out of 61 times, NWL closed lower 59.02% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 49.18% with an average market move of 0.05%.