WHR closes higher for the 3rd day in a row
Whirlpool Corporation (WHR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, WHR finished the week 10.02% higher at 119.70 after gaining $0.70 (0.59%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 119.70 marks the highest recorded closing price since April 29th. Trading up to $1.86 lower after the open, the share 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 missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (WHR as at May 22, 2020):
Friday's trading range has been $3.52 (2.98%), that's below the last trading month's daily average range of $5.02. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for WHR. Prices continued to consolidate within a tight trading range between 116.42 and 121.61 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on January 15th, WHR actually gained 0.15% on the following trading day.
After trading down to 116.42 earlier during the day, the stock bounced off the key technical support level at 117.74 (S1). The failure to close below the support might increase that levels significance as support going forward.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 121.82 where further buy stops might get activated. Further buying could move prices higher should the market test April's close-by high at 123.92.
Among the seven 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 Whirlpool. Out of 381 times, WHR closed higher 55.12% 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 56.69% with an average market move of 1.20%.