WEX runs into sellers again around 232.72
WEX Inc. (WEX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, WEX finished the week 9.08% higher at 231.66 after gaining $3.04 (1.33%) today, significantly outperforming the S&P 500 (0.18%). Today's close at 231.66 marks the highest recorded closing price ever. Trading up to $3.27 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.
Daily Candlestick Chart (WEX as at Feb 14, 2020):
Friday's trading range has been $5.69 (2.47%), that's slightly below the last trading month's daily average range of $5.83. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WEX.
After trading down to 227.03 earlier during the day, the stock bounced off the key technical support level at 227.28 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move above 231.71 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 232.72. The last time this happened on February 6th, WEX lost -3.27% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 234.95, upside momentum might accelerate should WEX be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for WEX. Out of 50 times, WEX closed higher 54.00% 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 70.00% with an average market move of 0.86%.