WLTW closes higher for the 3rd day in a row
Willis Towers Watson Public Limited Company (WLTW) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, WLTW finished Wednesday at 206.94 gaining $0.69 (0.33%), outperforming the S&P 500 (-0.46%). Trading $1.69 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (WLTW as at Sep 16, 2020):
Wednesday's trading range has been $2.62 (1.26%), that's far below the last trading month's daily average range of $4.97. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WLTW. Prices continued to consolidate within a tight trading range between 204.99 and 209.58 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 5th, WLTW lost -1.35% on the following trading day.
Prices are trading close to the key technical support level at 204.71 (S1). Prices are trading close to the key technical resistance level at 209.93 (R1).
Although the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 209.58 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 204.42 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Willis Towers. Out of 175 times, WLTW closed higher 56.57% 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 58.29% with an average market move of 0.45%.