WAT finds buyers at key support level
Waters Corporation (WAT) Technical Analysis Report for Feb 21, 2020 | by Techniquant Editorial Team
WAT ended the week 0.15% higher at 216.38 after losing $0.96 (-0.44%) today, but still outperforming the S&P 500 (-1.05%). Trading up to $0.94 lower after the open, Waters managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 12th, WAT actually lost -1.69% on the following trading day. 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 Feb 21, 2020):
Friday's trading range has been $2.00 (0.93%), that's far below the last trading month's daily average range of $4.37. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WAT. Prices continued to consolidate within a tight trading range between 214.85 and 217.82 where it has been caught now for the last three trading days.
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. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 215.08 earlier during the day, the market bounced off the key technical support level at 215.11 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move lower than 214.85 in the previous session, the share found buyers again around the same price level today at 215.08.
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 217.82 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 214.85 where further sell 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 474 times, WAT closed higher 59.49% 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 0.98%.