SHW runs into sellers again around 473.27
Sherwin-Williams Company (SHW) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
SHW ended Thursday at 466.14 gaining $14.48 (3.21%), notably underperforming the S&P 500 (6.24%). Trading up to $11.03 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 18th, SHW gained 10.49% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SHW as at Mar 26, 2020):
Thursday's trading range has been $19.27 (4.14%), that's below the last trading month's daily average range of $36.29. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SHW.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 454.00 earlier during the day, the share bounced off the key technical support level at 457.03 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move above 474.83 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 473.27.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 474.83 where further buy stops could get activated.
Among the six 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 Sherwin-Williams. Out of 397 times, SHW closed higher 59.95% 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 60.96% with an average market move of 0.97%.