WAT closes above its opening price after recovering from early selling pressure
Waters Corporation (WAT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
WAT ended the month 18.15% higher at 213.15 after gaining $0.39 (0.18%) today, underperforming the S&P 500 (0.77%). Trading up to $1.59 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 July 10th, WAT gained 2.39% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (WAT as at Jul 31, 2020):
Friday's trading range has been $3.83 (1.8%), that's slightly below the last trading month's daily average range of $6.61. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WAT.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After having been unable to move above 215.23 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 214.55.
While the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Waters. Out of 237 times, WAT closed higher 52.74% 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 61.60% with an average market move of 0.68%.