WLTW closes below its opening price unable to hold early session gains
Willis Towers Watson Public Limited Company (WLTW) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WLTW ended Monday at 202.46 edging lower $0.44 (-0.22%), underperforming the S&P 500 (0.38%). Trading $1.22 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below 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 (WLTW as at Jun 01, 2020):
Monday's trading range has been $2.66 (1.31%), that's far below the last trading month's daily average range of $4.87. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WLTW.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on April 21st, WLTW actually gained 1.84% on the following trading day.
After having been unable to move lower than 201.81 in the prior session, the market found buyers again around the same price level today at 201.38.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 208.79 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 197.52 where further sell stops might get activated. Further buying could move prices higher should the market test May's nearby high at 208.94.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Willis Towers. Out of 318 times, WLTW closed higher 57.55% 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 59.43% with an average market move of 0.66%.