WCC unable to break through key resistance level
WESCO International Inc. (WCC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, WCC finished Thursday at 26.34 gaining $1.24 (4.94%) on low volume, significantly underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 26.13, the share confirmed its breakout through the previous session high after trading up to $1.15 above it intraday.
Daily Candlestick Chart (WCC as at Mar 26, 2020):
Thursday's trading range has been $2.43 (9.48%), that's below the last trading month's daily average range of $3.28. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for WCC.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 27.08 (R1), the stock closed below it after spiking up to 27.28 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on March 10th, WCC lost -10.83% on the following trading day.
Although WESCO International is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for WESCO International. Out of 19 times, WCC closed lower 57.89% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 57.89% with an average market move of -0.29%.