SHW rallies 1.51% closing $6.70 higher
Sherwin-Williams Company (SHW) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SHW ended Tuesday at 450.47 surging $6.70 (1.51%), significantly outperforming the S&P 500 (0.05%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on March 11th, SHW actually lost -1.24% on the following trading day. Today's close at 450.47 marks the highest recorded closing price since October 2, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 444.15, Sherwin-Williams confirmed its breakout through the prior session high after trading up to $6.46 above it intraday.
Daily Candlestick Chart (SHW as at Apr 16, 2019):
Tuesday's trading range has been $7.28 (1.64%), that's above the last trading month's daily average range of $5.98. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SHW.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 449.81 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Sherwin-Williams. Out of 276 times, SHW closed higher 55.80% 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 61.23% with an average market move of 0.70%.