WLTW breaks below Thursday's low
Willis Towers Watson Public Limited Company (WLTW) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, WLTW finished the week -0.98% lower at 198.51 after losing $1.65 (-0.82%) today, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 199.10, the market confirmed its breakout through the prior session low after trading up to $1.58 below it intraday.
Daily Candlestick Chart (WLTW as at May 22, 2020):
Friday's trading range has been $3.99 (1.99%), that's below the last trading month's daily average range of $5.54. 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 WLTW.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on May 6th, WLTW actually gained 5.18% on the following trading day.
Prices are trading close to the key technical support level at 195.11 (S1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could speed up should prices move below the close-by swing low at 193.28 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Willis Towers. Out of 51 times, WLTW closed higher 58.82% 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 56.86% with an average market move of 0.83%.