WRK pushes through Thursday's high
Westrock Company (WRK) Technical Analysis Report for Sep 13, 2019 | by Techniquant Editorial Team
WRK ended the week 11.3% higher at 39.09 after gaining $0.65 (1.69%) today on high volume, significantly outperforming the S&P 500 (-0.07%). Today's close at 39.09 marks the highest recorded closing price since May 3rd. Closing above Thursday's high at 39.00, the market confirmed its breakout through the previous session high after trading up to $0.69 above it intraday.
Daily Candlestick Chart (WRK as at Sep 13, 2019):
Friday's trading range has been $1.07 (2.75%), that's slightly above the last trading month's daily average range of $0.99. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for WRK.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on August 22nd, WRK lost -3.84% on the following trading day.
Unable to break through the key technical resistance level at 39.11 (R1), Westrock closed below it after spiking up to 39.69 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 34.73.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Westrock. Out of 51 times, WRK closed higher 52.94% of the time on the next trading day after the market condition occurred.