WEX falls to lowest close since May 22nd
WEX Inc. (WEX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, WEX ended Wednesday at 144.86 losing $1.45 (-0.99%) on high volume, underperforming the S&P 500 (-0.46%). Today's close at 144.86 marks the lowest recorded closing price since May 22nd. Closing below Tuesday's low at 145.96, the stock confirmed its breakout through the prior session low after trading up to $1.44 below it intraday.
Daily Candlestick Chart (WEX as at Sep 16, 2020):
Wednesday's trading range has been $4.48 (3.03%), that's slightly below the last trading month's daily average range of $5.16. 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 slightly higher than usual for WEX.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 145.39 (now R1), which is likely to act as resistance going forward. After having been unable to move above 149.38 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 149.00. The last time this happened on September 3rd, WEX lost -3.16% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for WEX. Out of 608 times, WEX closed higher 55.43% 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 58.39% with an average market move of 0.96%.