WRK finds buyers again around 40.49

Westrock Company (WRK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team


WRK closes below its opening price unable to hold early session gains
WRK unable to break through key resistance level
WRK closes lower for the 3rd day in a row
WRK finds buyers again around 40.49
WRK closes within previous day's range after lackluster session


Moving lower for the 3rd day in a row, WRK ended the week -1.67% lower at 40.53 after losing $0.22 (-0.54%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.30 higher after the open, Westrock 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 (WRK as at Feb 14, 2020):

Daily technical analysis candlestick chart for Westrock Company (WRK) as at Feb 14, 2020

Friday's trading range has been $0.57 (1.4%), that's below the last trading month's daily average range of $1.00. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WRK.

One bullish candlestick pattern matches today's price action, the Tweezer Bottom. The last time a Tweezer Bottom showed up on July 12, 2019, WRK actually lost -2.98% on the following trading day.

Prices are trading close to the key technical support level at 39.89 (S1). Unable to break through the key technical resistance level at 40.83 (R1), the stock closed below it after spiking up to 41.06 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 40.49 in the prior session, the market found buyers again around the same price level today at 40.49.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

With prices trading close to this year's low at 38.55, downside momentum could accelerate should the share break out to new lows for the year.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Bottom" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Westrock. Out of 3 times, WRK closed lower 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after six trading days, showing a win rate of 66.67% with an average market move of -2.24%.

Market Conditions for WRK as at Feb 14, 2020

Loading Market Conditions for WRK (Westrock Company)...
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