SHW finds buyers at key support level
Sherwin-Williams (SHW) Technical Analysis Report for Aug 10, 2018
SHW ended the week 0.02% higher at 442.99 after losing $1.06 (-0.24%) today. Today's closing price of 442.99 marks the lowest close since August 3rd. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SHW as at Aug 10, 2018):
Friday's trading range was $5.22 (1.18%), that's below last trading month's daily average range of $7.38. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being below average.
After trading as low as 439.69 during the day, the market bounced off the key support level at 440.46. The failure to close below the support might increase that levels importance as support going forward. After having been unable to move above 445.37 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 444.91.
Although the stock is currently in a short-term down trend, this could just be a correction, as the medium and long term trends are both positive.
Buying might accelerate should prices move above the nearby swing high at 447.66 where further buy stops could get activated. With prices trading close to this year's high at 450.83, upside momentum might speed up should Sherwin-Williams be able to break out to new highs for the year.