SWK pushes through Wednesday's high
Stanley Black & Decker Inc. (SWK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SWK ended Thursday at 107.24 gaining $8.98 (9.14%) on low volume, significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 105.43, the stock confirmed its breakout through the previous session high after trading up to $2.76 above it intraday.
Daily Candlestick Chart (SWK as at Mar 26, 2020):
Thursday's trading range has been $9.60 (9.57%), that's slightly below the last trading month's daily average range of $10.90. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for SWK.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, SWK gained 8.85% on the following trading day.
Although Stanley Black is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Stanley Black. Out of 585 times, SWK closed higher 51.28% 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 56.92% with an average market move of 0.47%.