SWK closes higher for the 4th day in a row
Stanley Black & Decker Inc. (SWK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, SWK ended Wednesday at 165.36 gaining $2.52 (1.55%), notably outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 164.75, the share confirmed its breakout through the prior session high after trading up to $2.60 above it intraday.
Daily Candlestick Chart (SWK as at Sep 16, 2020):
Wednesday's trading range has been $4.63 (2.83%), that's above the last trading month's daily average range of $3.55. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SWK.
Buyers managed to take out the key technical resistance level at 164.24 (now S1), which is likely to act as support going forward. The last time this happened on September 11th, SWK gained 2.10% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to September's high at 168.25, upside momentum might accelerate should Stanley Black mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Stanley Black. Out of 251 times, SWK closed higher 56.57% 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 58.57% with an average market move of 0.89%.