WHR closes below its opening price unable to hold early session gains
Whirlpool Corporation (WHR) Technical Analysis Report for Feb 26, 2020 | by Techniquant Editorial Team
WHR ended Wednesday at 137.31 edging higher $0.16 (0.12%), slightly outperforming the S&P 500 (-0.38%). Trading $3.38 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on February 12th, WHR lost -0.31% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (WHR as at Feb 26, 2020):
Wednesday's trading range has been $4.70 (3.41%), that's slightly above the last trading month's daily average range of $3.94. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for WHR.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Unable to break through the key technical resistance level at 140.12 (R1), Whirlpool closed below it after spiking up to 141.36 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 148.60.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 134.80 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Whirlpool. Out of 744 times, WHR closed higher 53.09% 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 54.70% with an average market move of 0.73%.