WRK still stuck within tight trading range
Westrock Company (WRK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
WRK finished the week 4.71% higher at 25.35 after gaining $0.20 (0.8%) today, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.19 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on April 13th, WRK actually lost -1.63% on the following trading day. 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 (WRK as at May 22, 2020):
Friday's trading range has been $0.46 (1.83%), that's far below the last trading month's daily average range of $1.30. 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 WRK. Prices continued to consolidate within a tight trading range between 24.95 and 26.08 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 26.08 (R1). After having been unable to move lower than 25.07 in the previous session, the stock found buyers again around the same price level today at 24.98.
Westrock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 25.89 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 24.95 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Westrock. Out of 256 times, WRK closed higher 53.13% 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 three trading days, showing a win rate of 55.47% with an average market move of 0.26%.