WAT breaks back below 20-day moving average
Waters Corporation (WAT) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
WAT ended the week 6.86% higher at 185.36 after losing $6.06 (-3.17%) today on low volume, but still slightly outperforming the S&P 500 (-3.37%). Trading up to $3.35 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 19th, WAT actually lost -2.23% 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 Mar 27, 2020):
Friday's trading range has been $7.52 (4.06%), that's below the last trading month's daily average range of $12.98. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently 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. Additionally, three candlestick patterns are matching today's price action, the Bearish Harami Cross Pattern and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
Waters closed back below the 20-day moving average at 185.80.
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 192.72 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Waters. Out of 150 times, WAT closed higher 55.33% 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 59.33% with an average market move of 0.38%.