WFT dominated by bulls lifting the market higher throughout the day
Weatherford International plc (WFT) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
WFT ended Tuesday at 0.62 gaining $0.05 (8.77%), notably outperforming the S&P 500 (0.05%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 0.59, the stock confirmed its breakout through the previous session high after trading up to $0.04 above it intraday.
Daily Candlestick Chart (WFT as at Apr 16, 2019):
Tuesday's trading range has been $0.07 (12.5%), that's above the last trading month's daily average range of $0.05. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WFT.
Even with a weak opening the share managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, three candlestick patterns are matching today's price action, the Bullish Belt-hold, the Tweezer Bottom and the White Candle which are known as bullish patterns.
Buyers managed to take out the key technical resistance level at 0.60 (now S1), which is likely to act as support going forward. After having been unable to move lower than 0.56 in the previous session, Weatherford found buyers again around the same price level today at 0.56. The last time this happened on April 10th, WFT actually lost -6.67% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Bottom" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Weatherford. Out of 32 times, WFT closed lower 53.13% 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 three trading days, showing a win rate of 68.75% with an average market move of -0.30%.