WAT closes lower for the 2nd day in a row
Waters Corporation (WAT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WAT finished the week -0.6% lower at 216.06 after losing $4.52 (-2.05%) today, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 216.06 marks the lowest recorded closing price since November 14, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 220.45, the market confirmed its breakout through the previous session low after trading up to $5.28 below it intraday.
Daily Candlestick Chart (WAT as at Feb 14, 2020):
Friday's trading range has been $6.01 (2.73%), that's above the last trading month's daily average range of $4.69. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WAT.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 215.11 (S1). Waters closed back below the 200-day moving average at 218.14 for the first time since February 7th. When this moving average was crossed below the last time on February 7th, WAT actually gained 0.81% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 215.11 where further sell stops might get triggered. With prices trading close to this year's low at 214.49, downside momentum could accelerate should the share break out to new lows for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Waters. Out of 252 times, WAT closed higher 59.13% 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 60.71% with an average market move of 1.05%.