SHW closes lower for the 2nd day in a row
Sherwin-Williams Company (SHW) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SHW ended Wednesday at 715.12 edging lower $1.13 (-0.16%), but still slightly outperforming the S&P 500 (-0.46%). Trading $2.96 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. 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 Sep 16, 2020):
Wednesday's trading range has been $8.67 (1.21%), that's below the last trading month's daily average range of $12.99. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SHW. Prices continued to consolidate within a tight trading range between 711.00 and 725.91 where it has been caught now for the last three trading days.
After having been unable to move lower than 713.85 in the prior session, the stock found buyers again around the same price level today at 713.02. The last time this happened on September 8th, SHW gained 3.75% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 725.91 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Sherwin-Williams. Out of 285 times, SHW closed higher 58.95% 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 63.86% with an average market move of 1.21%.