WBC closes above its opening price after recovering from early selling pressure
Wabco Holdings Inc. (WBC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
WBC finished the week 0.04% higher at 136.01 after gaining $0.06 (0.04%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.11 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (WBC as at Feb 14, 2020):
Friday's trading range has been $0.19 (0.14%), that's slightly below the last trading month's daily average range of $0.22. 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 WBC. Prices continued to consolidate within a tight trading range between 135.88 and 136.08 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns. The last time a Bullish High-Wave Candle showed up on September 6, 2019, WBC actually lost -0.10% on the following trading day.
After trading down to 135.88 earlier during the day, the share bounced off the key technical support level at 135.94 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 136.05 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 136.07.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 136.08 where further buy stops might get activated. With prices trading close to this year's high at 136.17, upside momentum could speed up should Wabco Holdings be able to break out to new highs for the year. As prices are trading close to February's low at 135.73, downside momentum might accelerate should WBC mark new lows for the month.
Among the seven 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 Wabco Holdings. Out of 409 times, WBC closed higher 54.77% 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 59.41% with an average market move of 0.88%.