WAT finds buyers again around 197.00
Waters Corporation (WAT) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
WAT ended the week 2.99% higher at 199.44 after losing $0.50 (-0.25%) today, but still outperforming the S&P 500 (-0.92%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (WAT as at Nov 09, 2018):
Friday's trading range has been $3.56 (1.78%), that's below the last trading month's daily average range of $5.41. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for WAT.
After moving higher in the prior session, the stock closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on October 29th, WAT actually gained 2.81% on the following trading day.
After trading down to 197.00 earlier during the day, the share bounced off the key technical support level at 198.89 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move lower than 197.53 in the prior session, the market found buyers again around the same price level today at 197.00.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 201.22 where further buy stops could get activated.
Among the six 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 Waters. Out of 462 times, WAT closed higher 60.17% 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 62.99% with an average market move of 1.13%.