WRK closes higher for the 4th day in a row
Westrock Company (WRK) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, WRK ended the month 0.71% higher at 28.26 after gaining $0.51 (1.84%) today, slightly outperforming the S&P 500 (1.54%). Closing above Monday's high at 28.06, the share confirmed its breakout through the previous session high after trading up to $0.40 above it intraday.
Daily Candlestick Chart (WRK as at Jun 30, 2020):
Tuesday's trading range has been $1.39 (5.06%), that's slightly above the last trading month's daily average range of $1.31. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WRK.
One bullish candlestick pattern matches today's price action, the White Candle.
Westrock managed to close back above the 50-day moving average at 28.13 for the first time since June 17th. After having been unable to move lower than 26.96 in the prior session, the stock found buyers again around the same price level today at 27.07. The last time this happened on June 19th, WRK actually lost -3.32% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 29.04 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Westrock. Out of 261 times, WRK closed higher 52.87% 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 55.56% with an average market move of 0.31%.