WAT closes higher for the 3rd day in a row
Waters Corporation (WAT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, WAT ended Wednesday at 206.59 gaining $0.98 (0.48%), outperforming the S&P 500 (-0.46%). Trading $1.03 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (WAT as at Sep 16, 2020):
Wednesday's trading range has been $1.58 (0.76%), that's far below the last trading month's daily average range of $4.49. 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. Prices continued to consolidate within a tight trading range between 202.99 and 209.15 where it has been caught now for the whole last trading week.
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.
The stock managed to close back above the 200-day moving average at 205.87 for the first time since September 3rd. When this moving average was crossed above the last time on July 15th, WAT gained 1.47% on the following trading day.
Though Waters is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 209.15 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 202.99 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Waters. Out of 389 times, WAT closed higher 56.30% 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 62.98% with an average market move of 1.11%.