WAT breaks above 20-day moving average for the first time since January 28th
Waters Corporation (WAT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
WAT ended Thursday at 191.42 surging $14.62 (8.27%) on low volume, notably 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 185.33, Waters confirmed its breakout through the previous session high after trading up to $7.39 above it intraday.
Daily Candlestick Chart (WAT as at Mar 26, 2020):
Thursday's trading range has been $16.50 (9.26%), that's above the last trading month's daily average range of $12.97. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for WAT.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, WAT actually lost -2.15% on the following trading day.
The market managed to close above the 20-day moving average at 186.28 for the first time since January 28th.
Though the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to March's high at 208.69, upside momentum could speed up should the stock mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Waters. Out of 586 times, WAT closed higher 50.85% 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 56.48% with an average market move of 0.44%.