SWK slides to lowest close since March 21, 2017
Stanley Black & Decker (SWK) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
SWK finished the week -9.07% lower at 129.77 after losing $1.15 (-0.88%) today, notably underperforming the S&P 500 (1.42%). Today's close at 129.77 marks the lowest recorded closing price since March 21, 2017. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SWK as at Oct 12, 2018):
Friday's trading range has been $6.00 (4.5%), that's far above the last trading month's daily average range of $3.12. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SWK.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on October 3rd, SWK actually lost -0.99% on the following trading day.
Prices are trading close to the key technical resistance level at 132.44 (R1).
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 144.99.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Stanley Black. Out of 25 times, SWK closed higher 64.00% 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 68.00% with an average market move of 8.32%.