SWK ends the day indecisive
Stanley Black & Decker Inc. (SWK) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SWK ended the month 13.84% higher at 125.45 after edging lower $1.04 (-0.82%) today, significantly underperforming the S&P 500 (0.48%). Trading up to $3.44 lower after the open, Stanley Black managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, SWK gained 3.70% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SWK as at May 29, 2020):
Friday's trading range has been $5.59 (4.46%), that's slightly above the last trading month's daily average range of $5.22. 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 higher than usual for SWK.
One neutral candlestick pattern matches today's price action, the Doji.
Prices are trading close to the key technical support level at 120.52 (S1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could accelerate should prices move below the close-by swing low at 120.87 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Stanley Black. Out of 298 times, SWK closed higher 56.71% 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 56.71% with an average market move of 0.67%.