WDR dominated by bears dragging the market lower throughout the day
Waddell & Reed Financial Inc. (WDR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, WDR finished the week -4.31% lower at 16.21 after losing $0.39 (-2.35%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 16.46, the stock confirmed its breakout through the previous session low after trading up to $0.32 below it intraday.
Daily Candlestick Chart (WDR as at Feb 14, 2020):
Friday's trading range has been $0.41 (2.48%), that's slightly above the last trading month's daily average range of $0.39. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WDR.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 15.99 (S1). Waddell & Reed closed back below the 100-day moving average at 16.44 for the first time since February 3rd. When this moving average was crossed below the last time on January 24th, WDR lost -3.16% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's low at 15.85, downside momentum could accelerate should the share break out to new lows for the year. Trading close to December's low at 15.53 we might see further downside momentum if potential sell stops at the level get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Its common bearish interpretation has been confirmed for Waddell & Reed. Out of 50 times, WDR closed lower 60.00% 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 48.00% with an average market move of -0.42%.