WCC closes above its opening price after recovering from early selling pressure
WESCO International Inc. (WCC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, WCC ended the month 5.44% higher at 35.11 after edging higher $0.30 (0.86%) today, underperforming the S&P 500 (1.54%). Trading up to $0.74 lower after the open, the share 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 in a lackluster session.
Daily Candlestick Chart (WCC as at Jun 30, 2020):
Tuesday's trading range has been $1.39 (4.01%), that's far below the last trading month's daily average range of $2.11. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for WCC. Prices continued to consolidate within a tight trading range between 33.74 and 37.31 where it has been caught now for the whole last trading week.
Despite a weak opening WESCO International managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 25th, WCC actually lost -8.74% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
Prices are trading close to the key technical support level at 33.90 (S1). After having been unable to move above 35.59 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 35.31.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 37.31 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 33.74 where further sell stops might get triggered. As prices are trading close to June's low at 32.57, downside momentum could speed up should WCC mark new lows for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for WESCO International. Out of 104 times, WCC closed higher 54.81% 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 59.62% with an average market move of 1.32%.