WAB closes lower for the 6th day in a row
Westinghouse Air Brake Technologies Corporation (WAB) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 6th day in a row, WAB ended Thursday at 62.31 losing $1.94 (-3.02%), strongly underperforming the S&P 500 (0.25%). Today's close at 62.31 marks the lowest recorded closing price since February 9, 2016. Closing below Wednesday's low at 64.00, the market confirmed its breakout through the previous session low after trading up to $3.00 below it intraday.
Daily Candlestick Chart (WAB as at Aug 15, 2019):
Thursday's trading range has been $3.72 (5.79%), that's above the last trading month's daily average range of $2.63. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for WAB.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 63.30 (now R1), which is likely to act as resistance going forward. The last time this happened on Tuesday, WAB lost -4.22% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 71.52.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Westinghouse Air. Out of 33 times, WAB closed higher 60.61% 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 75.76% with an average market move of 2.71%.