SWK closes lower for the 2nd day in a row


Stanley Black & Decker Inc. (SWK) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team

Highlights

SWK closes below its opening price unable to hold early session gains
SWK fails to close above 200-day moving average
SWK closes lower for the 2nd day in a row
SWK breaks below Thursday's low

Overview

Moving lower for the 2nd day in a row, SWK finished the week 1.74% higher at 131.51 after losing $0.47 (-0.36%) today, underperforming the S&P 500 (0.5%). Trading $1.92 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 131.61, the share confirmed its breakout through the previous session low after trading up to $0.61 below it intraday.

Daily Candlestick Chart (SWK as at Mar 15, 2019):

Daily technical analysis candlestick chart for Stanley Black & Decker Inc. (SWK) as at Mar 15, 2019

Friday's trading range has been $2.97 (2.25%), that's above the last trading month's daily average range of $2.43. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SWK.

In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on February 25th, SWK lost -1.08% on the following trading day.

After spiking up to 133.97 during the day, the market found resistance at the 200-day moving average at 133.32.

While Stanley Black is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.

As prices are trading close to March's high at 135.79, upside momentum might accelerate should SWK mark new highs for the month.

Among the eight 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 Stanley Black. Out of 302 times, SWK closed higher 55.63% 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 58.28% with an average market move of 0.87%.


Market Conditions for SWK as at Mar 15, 2019

Loading Market Conditions for SWK (Stanley Black & Decker Inc.)...
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