NWL closes within prior day's range
Newell Brands Inc. (NWL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
NWL ended Wednesday at 17.99 gaining $0.31 (1.75%), significantly outperforming the S&P 500 (-0.46%). Today's close at 17.99 marks the highest recorded closing price since February 24th. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NWL as at Sep 16, 2020):
Wednesday's trading range has been $0.54 (3.04%), that's above the last trading month's daily average range of $0.46. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NWL.
Prices are trading close to the key technical support level at 17.61 (S1). After having been unable to move lower than 17.66 in the prior session, the share found buyers again around the same price level today at 17.70. The last time this happened on September 3rd, NWL gained 2.51% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 16.57.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Newell Brands. Out of 544 times, NWL closed higher 50.37% 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 56.62% with an average market move of 0.50%.