WH runs into sellers again around 55.33
Wyndham Hotels & Resorts Inc. (WH) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
WH ended Wednesday at 54.62 edging higher $0.02 (0.04%), slightly outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (WH as at Sep 16, 2020):
Wednesday's trading range has been $1.92 (3.48%), that's above the last trading month's daily average range of $1.58. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WH.
After trading down to 53.41 earlier during the day, the stock bounced off the key technical support level at 53.68 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on September 9th, WH gained 0.53% on the following trading day. Prices are trading close to the key technical resistance level at 55.54 (R1). After having been unable to move above 55.54 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 55.33.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 55.54 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Wyndham Hotels. Out of 78 times, WH closed higher 61.54% 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 four trading days, showing a win rate of 56.41% with an average market move of 0.60%.