SWK runs into sellers again around 168.64
Stanley Black & Decker Inc. (SWK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SWK ended the week 2.4% higher at 166.97 after edging lower $0.91 (-0.54%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 167.11, the share confirmed its breakout through the previous session low after trading up to $1.12 below it intraday.
Daily Candlestick Chart (SWK as at Feb 14, 2020):
Friday's trading range has been $2.65 (1.58%), that's below the last trading month's daily average range of $3.42. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher 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 6th, SWK lost -1.85% on the following trading day. Notwithstanding a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to the key technical support level at 165.15 (S1). Prices are trading close to the key technical resistance level at 169.14 (R1). After having been unable to move above 168.42 in the previous session, Stanley Black ran into sellers again around the same price level today, missing to move higher than 168.64.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 169.04 where further buy stops might get triggered. With prices trading close to this year's high at 173.67, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Stanley Black. Out of 574 times, SWK closed higher 54.70% 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 60.28% with an average market move of 0.88%.