SWK breaks back above 20-day moving average
Stanley Black & Decker Inc. (SWK) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SWK ended the week 4.09% higher at 146.73 after surging $6.30 (4.49%) today on high volume, notably outperforming the S&P 500 (1.09%). This is the biggest single-day gain in over two months. The last time we've seen such an unusually strong single-day gain on September 5th, SWK gained 1.11% on the following trading day. Today's close at 146.73 marks the highest recorded closing price since September 12th. The bulls were in full control today, moving the market higher throughout the whole session.
Daily Candlestick Chart (SWK as at Oct 11, 2019):
Friday's trading range has been $5.52 (3.86%), that's far above the last trading month's daily average range of $3.22. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SWK.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 20-day moving average at 141.02 for the first time since September 30th.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 154.10, upside momentum could speed up should Stanley Black be able to break out to new highs for the year. Further buying might move prices higher should the market test September's close-by high at 151.23.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Stanley Black. Out of 143 times, SWK closed higher 55.94% 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 56.64% with an average market move of 0.42%.