WHR closes above its opening price after recovering from early selling pressure
Whirlpool Corporation (WHR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, WHR finished the month 25.93% higher at 163.12 after gaining $0.11 (0.07%) today, underperforming the S&P 500 (0.77%). Trading up to $1.81 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 failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (WHR as at Jul 31, 2020):
Friday's trading range has been $2.17 (1.33%), that's below the last trading month's daily average range of $4.19. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WHR. Prices continued to consolidate within a tight trading range between 159.75 and 164.41 where it has been caught now for the last three trading days.
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. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on April 15th, WHR lost -3.25% on the following trading day.
Prices are trading close to the key technical support level at 163.00 (S1). After having been unable to move above 163.64 in the previous session, Whirlpool ran into sellers again around the same price level today, missing to move higher than 163.23.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 166.06 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 159.75 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Whirlpool. Out of 306 times, WHR closed higher 58.50% 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 55.88% with an average market move of 0.75%.