SHW closes above its opening price after recovering from early selling pressure
Sherwin-Williams Company (SHW) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
SHW ended Thursday at 582.97 gaining $5.41 (0.94%), slightly outperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Trading up to $2.66 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 Monday, SHW gained 2.09% on the following trading day. 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 Jul 02, 2020):
Thursday's trading range has been $6.38 (1.09%), that's far below the last trading month's daily average range of $16.82. 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.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 594.45 where further buy stops might get activated. With prices trading close to this year's high at 603.36, upside momentum could accelerate should Sherwin-Williams be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Sherwin-Williams. Out of 72 times, SHW closed higher 58.33% 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 69.44% with an average market move of 1.14%.