WLTW dominated by bulls lifting the market higher throughout the day
Willis Towers Watson Public Limited Company (WLTW) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
WLTW finished the month -2.93% lower at 196.95 after gaining $4.02 (2.08%) today, outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 196.35, the stock confirmed its breakout through the prior session high after trading up to $1.41 above it intraday.
Daily Candlestick Chart (WLTW as at Jun 30, 2020):
Tuesday's trading range has been $6.69 (3.49%), that's slightly above the last trading month's daily average range of $6.18. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WLTW.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. In spite of a weak opening the share managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Willis Towers managed to close back above the 200-day moving average at 193.39. When this moving average was crossed above the last time on June 25th, WLTW actually lost -2.39% on the following trading day. Prices are trading close to the key technical resistance level at 201.35 (R1). After having been unable to move lower than 191.69 in the prior session, the market found buyers again around the same price level today at 191.07.
While 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 201.35 where further buy stops might get activated.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Willis Towers. Out of 59 times, WLTW closed higher 55.93% 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 62.71% with an average market move of 0.80%.