SHW closes within prior day's range
Sherwin-Williams Company (SHW) Technical Analysis Report for Aug 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SHW ended the week 1.5% higher at 666.56 after losing $2.67 (-0.4%) today on low volume, slightly underperforming the S&P 500 (-0.02%). Trading $3.79 higher after the open, Sherwin-Williams was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, SHW actually gained 2.99% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SHW as at Aug 14, 2020):
Friday's trading range has been $10.66 (1.59%), that's slightly below the last trading month's daily average range of $12.41. 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.
In spite of a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
The share ran into sellers again today around 673.97 for the third trading day in a row after having found sellers at 674.55 in the previous session and at 675.74 two days ago.
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 nearby swing high at 675.74 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Sherwin-Williams. Out of 103 times, SHW closed higher 57.28% 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 66.02% with an average market move of 1.62%.