SWK pops to highest close since June 8th
Stanley Black & Decker Inc. (SWK) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SWK ended Monday at 142.04 gaining $2.12 (1.52%), notably outperforming the S&P 500 (-0.94%). Today's close at 142.04 marks the highest recorded closing price since June 8th. 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 Jul 13, 2020):
Monday's trading range has been $5.27 (3.73%), that's slightly above the last trading month's daily average range of $4.79. 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 lower than usual for SWK.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star. The last time a Shooting Star showed up on June 8th, SWK lost -4.72% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to July's low at 134.94, downside momentum could accelerate should the share mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Stanley Black. Out of 212 times, SWK closed higher 59.43% 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 58.49% with an average market move of 0.29%.