SWK dominated by bulls lifting the market higher throughout the day
Stanley Black & Decker Inc. (SWK) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
SWK finished the month 11.1% higher at 139.38 after gaining $3.26 (2.39%) today on low volume, outperforming the S&P 500 (1.54%). Today's close at 139.38 marks the highest recorded closing price since June 9th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 138.40, the share confirmed its breakout through the previous session high after trading up to $1.84 above it intraday.
Daily Candlestick Chart (SWK as at Jun 30, 2020):
Tuesday's trading range has been $4.96 (3.66%), that's slightly below the last trading month's daily average range of $5.91. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SWK.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
The market managed to close back above the 20-day moving average at 137.09. After spiking up to 140.24 during the day, the stock found resistance at the 200-day moving average at 139.68. The last time this happened on June 3rd, SWK actually gained 3.30% on the following trading day. After having been unable to move lower than 135.12 in the prior session, Stanley Black found buyers again around the same price level today at 135.28.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 200" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Stanley Black. Out of 15 times, SWK closed higher 60.00% 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 60.00% with an average market move of 2.00%.