NWL dominated by bulls lifting the market higher throughout the day
Newell Brands Inc. (NWL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NWL finished Thursday at 14.11 gaining $1.35 (10.58%) on low volume, notably outperforming the S&P 500 (6.24%). Today's close at 14.11 marks the highest recorded closing price since March 5th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 13.29, the share confirmed its breakout through the prior session high after trading up to $0.93 above it intraday.
Daily Candlestick Chart (NWL as at Mar 26, 2020):
Thursday's trading range has been $1.49 (11.48%), that's above the last trading month's daily average range of $1.28. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NWL.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, NWL gained 2.41% on the following trading day.
The market managed to close above the 20-day moving average at 13.38 for the first time since February 18th. Prices are trading close to the key technical resistance level at 14.62 (R1).
While Newell Brands is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Newell Brands. Out of 420 times, NWL closed higher 55.48% 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 55.71% with an average market move of 0.46%.