WAL closes higher for the 3rd day in a row
Western Alliance Bancorporation (WAL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, WAL finished Thursday at 32.53 gaining $3.60 (12.44%), significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 29.99, Western Alliance confirmed its breakout through the prior session high after trading up to $2.78 above it intraday.
Daily Candlestick Chart (WAL as at Mar 26, 2020):
Thursday's trading range has been $3.99 (13.66%), that's above the last trading month's daily average range of $3.22. 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 slightly higher than usual for WAL.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 19th, WAL actually lost -3.91% on the following trading day.
After trading down to 28.78 earlier during the day, the market bounced off the key technical support level at 28.86 (S1). The failure to close below the support might increase that levels importance as support going forward.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Western Alliance. Out of 444 times, WAL closed higher 55.63% 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 61.49% with an average market move of 1.26%.