NWL rallies $0.58 (2.97%) after posting strong earnings
Newell Brands Inc. (NWL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
NWL ended the week 0.2% higher at 20.10 after surging $0.58 (2.97%) today on high volume, strongly outperforming the S&P 500 (0.18%) following today's earnings report. Closing above Thursday's high at 19.91, the share confirmed its breakout through the prior session high after trading up to $0.78 above it intraday.
Daily Candlestick Chart (NWL as at Feb 14, 2020):
NWL reported earnings of $0.42 per share before today's market open. With analysts having expected an EPS of $0.39, Newell Brands Inc. topped market expectations by 7.7%. The company's last earnings report was released on Nov. 1, 2019, when Newell Brands Inc. reported earnings of $0.73 per share beating market expectations by 30.4%.
Friday's trading range has been $2.14 (11.3%), that's far above the last trading month's daily average range of $0.53. Weekly volatility is also higher, being way above 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 previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Even with a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 20-day moving average at 19.98. When this moving average was crossed above the last time on February 4th, NWL gained 3.11% on the following trading day. Unable to break through the key technical resistance level at 20.36 (R1), Newell Brands closed below it after spiking up to 20.69 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Newell Brands. Out of 66 times, NWL closed higher 62.12% 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 60.61% with an average market move of 1.08%.