SHW breaks back above 20-day moving average
Sherwin-Williams Company (SHW) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SHW ended the month -2.69% lower at 577.85 after gaining $11.85 (2.09%) today, outperforming the S&P 500 (1.54%). Closing above Monday's high at 569.80, Sherwin-Williams confirmed its breakout through the previous session high after trading up to $10.08 above it intraday.
Daily Candlestick Chart (SHW as at Jun 30, 2020):
Tuesday's trading range has been $16.16 (2.85%), that's slightly below the last trading month's daily average range of $17.55. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SHW.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 15th, SHW gained 1.11% on the following trading day.
The market managed to close back above the 20-day moving average at 574.05 for the first time since June 22nd.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 594.45 where further buy stops might get triggered. With prices trading close to this year's high at 603.36, upside momentum could accelerate should the stock be able to break out to new highs for the year.
Among the eight 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 400 times, SHW closed higher 59.00% 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 61.50% with an average market move of 1.12%.