WHR closes within prior day's range after lackluster session
Whirlpool Corporation (WHR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
WHR finished the week 1.98% higher at 152.16 after edging higher $0.13 (0.09%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.84 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (WHR as at Feb 14, 2020):
Friday's trading range has been $2.27 (1.49%), that's below the last trading month's daily average range of $4.28. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WHR.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Northern Doji showed up on January 30th, WHR lost -4.33% on the following trading day.
Prices are trading close to the key technical resistance level at 153.61 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 154.77 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 150.36 where further sell stops might get triggered. With prices trading close to this year's high at 158.44, upside momentum could accelerate should the market be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Whirlpool. Out of 75 times, WHR closed higher 61.33% 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 57.33% with an average market move of 0.30%.