NWL closes lower for the 3rd day in a row
Newell Brands Inc. (NWL) Technical Analysis Report for Mar 14, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, NWL finished Thursday at 15.45 losing $0.02 (-0.13%), slightly underperforming the S&P 500 (-0.09%). Trading $0.33 higher after the open, Newell Brands was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NWL as at Mar 14, 2019):
Thursday's trading range has been $0.57 (3.66%), that's slightly above the last trading month's daily average range of $0.55. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NWL.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar.
Unable to break through the key technical resistance level at 15.86 (R1), the share closed below it after spiking up to 15.90 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on March 8th, NWL actually gained 1.10% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 15.23 where further sell stops might get activated. 2018's low at 15.12 is within reach and we could see further downside momentum should the market break out beyond. As prices are trading close to March's high at 16.40, upside momentum might accelerate should the stock mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Newell Brands. Out of 115 times, NWL closed higher 49.57% 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 56.52% with an average market move of 0.52%.