WLTW pushes through key technical resistance level
Willis Towers Watson Public Limited Company (WLTW) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
WLTW ended Thursday at 165.50 gaining $1.74 (1.06%), notably underperforming the S&P 500 (6.24%). 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 (WLTW as at Mar 26, 2020):
Thursday's trading range has been $7.83 (4.77%), that's below the last trading month's daily average range of $12.73. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for WLTW.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Bullish Spinning Top which are both known as bullish patterns. The last time a Bullish Hikkake Pattern showed up on Monday, WLTW gained 15.11% on the following trading day.
Buyers managed to take out the key technical resistance level at 165.42 (now S1), which is likely to act as support going forward. After having been unable to move lower than 161.85 in the prior session, Willis Towers found buyers again around the same price level today at 161.52.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 172.08 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Willis Towers. Out of 108 times, WLTW closed higher 57.41% 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 60.19% with an average market move of 0.67%.