WRK breaks below Thursday's low
Westrock Company (WRK) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WRK ended the month -4.95% lower at 26.86 after tanking $1.40 (-4.95%) today on high volume, strongly underperforming the S&P 500 (0.77%). Today's close at 26.86 marks the lowest recorded closing price since July 9th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 27.99, the share confirmed its breakout through the prior session low after trading up to $1.43 below it intraday.
Daily Candlestick Chart (WRK as at Jul 31, 2020):
Friday's trading range has been $1.69 (5.99%), that's far above the last trading month's daily average range of $1.03. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WRK.
One bearish candlestick pattern matches today's price action, the Black Candle.
The stock closed below the 100-day moving average at 28.14 for the first time since July 13th. When this moving average was crossed below the last time on June 10th, WRK lost -9.02% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling might move prices lower should the market test June's close-by low at 25.44.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Westrock. Out of 24 times, WRK closed higher 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 long side has been after seven trading days, showing a win rate of 54.17% with an average market move of 0.09%.