WLTW closes above its opening price after recovering from early selling pressure
Willis Towers Watson Public Limited Company (WLTW) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
WLTW ended the week -3.14% lower at 137.30 after gaining $1.23 (0.9%) today, underperforming the S&P 500 (1.42%). Trading up to $1.62 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.
Daily Candlestick Chart (WLTW as at Oct 12, 2018):
Friday's trading range has been $3.21 (2.34%), that's above the last trading month's daily average range of $2.41. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for WLTW.
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, six candlestick patterns are matching today's price action, the Bullish Harami Cross Pattern and the Southern Doji which are both known as bullish patterns, one bearish pattern, the Gravestone Doji and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Gravestone Doji showed up on Tuesday, WLTW lost -2.21% on the following trading day.
Prices are trading close to the key technical support level at 135.35 (S1). After having been unable to move lower than 135.35 in the previous session, the stock found buyers again around the same price level today at 135.55.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 142.92.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 135.35 where further sell stops could get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Willis Towers. Out of 40 times, WLTW closed higher 55.00% 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 60.00% with an average market move of 0.41%.