WRK breaks above 20-day moving average for the first time since February 21st
Westrock Company (WRK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, WRK finished Thursday at 28.39 gaining $2.04 (7.74%) on low volume, notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 28.25, the stock confirmed its breakout through the prior session high after trading up to $0.44 above it intraday.
Daily Candlestick Chart (WRK as at Mar 26, 2020):
Thursday's trading range has been $2.37 (8.96%), that's slightly below the last trading month's daily average range of $2.48. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for WRK.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close above the 20-day moving average at 27.66 for the first time since February 21st. When this moving average was crossed above the last time on February 21st, WRK actually lost -8.03% on the following trading day. Prices are trading close to the key technical resistance level at 29.02 (R1).
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Westrock. Out of 182 times, WRK closed higher 59.34% 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 52.20% with an average market move of 0.24%.