WAB finds buyers again around 76.78
Westinghouse Air Brake Technologies Corporation (WAB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WAB ended the week -0.49% lower at 77.05 after losing $0.44 (-0.57%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (WAB as at Feb 14, 2020):
Friday's trading range has been $1.02 (1.31%), that's far below the last trading month's daily average range of $1.63. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WAB.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on January 29th, WAB lost -0.39% on the following trading day.
Prices are trading close to the key technical support level at 76.15 (S1). Prices are trading close to the key technical resistance level at 77.89 (R1). After having been unable to move lower than 76.83 in the previous session, the share found buyers again around the same price level today at 76.78.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Westinghouse Air. Out of 508 times, WAB closed higher 53.74% 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 61.81% with an average market move of 0.91%.