WAT closes above its opening price after recovering from early selling pressure
Waters Corporation (WAT) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, WAT ended the week -4.67% lower at 181.80 after surging $3.48 (1.95%) today, outperforming the S&P 500 (1.42%). This is the biggest single-day gain in over two months. Trading up to $1.71 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (WAT as at Oct 12, 2018):
Friday's trading range has been $3.53 (1.95%), that's slightly above the last trading month's daily average range of $2.87. 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 WAT.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 182.96 (R1). The stock was sold again around 182.51 after having seen highs at 182.96, 182.59 and 182.76 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on December 28, 2017, WAT lost -0.83% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 191.25.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 182.96 where further buy stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Waters Corporation. Out of 55 times, WAT closed higher 54.55% 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 67.27% with an average market move of 0.62%.