WLTW rises to highest close since December 13, 2018
Willis Towers Watson Public Limited Company (WLTW) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, WLTW finished the week 2.32% higher at 153.99 after gaining $0.64 (0.42%) today, slightly outperforming the S&P 500 (-0.01%). Today's close at 153.99 marks the highest recorded closing price since December 13, 2018. Trading up to $0.77 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 153.47, Willis Towers confirmed its breakout through the previous session high after trading up to $0.59 above it intraday.
Daily Candlestick Chart (WLTW as at Jan 11, 2019):
Friday's trading range has been $2.20 (1.44%), that's below the last trading month's daily average range of $3.62. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WLTW. Prices continued to consolidate within a tight trading range between 151.13 and 154.20 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After trading down to 151.86 earlier during the day, the share bounced off the key technical support level at 152.62 (S1). The failure to close below the support could increase that levels significance as support going forward. After spiking up to 154.06 during the day, the market found resistance at the 50-day moving average at 154.06. The last time this happened on Monday, WLTW actually gained 0.64% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 154.20 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 151.13 where further sell stops could get activated.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Willis Towers. Out of 41 times, WLTW closed higher 70.73% 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 58.54% with an average market move of 1.89%.