WRK closes higher for the 4th day in a row
Westrock Company (WRK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, WRK ended Wednesday at 36.35 gaining $0.40 (1.11%) on high volume, notably outperforming the S&P 500 (-0.46%). Today's close at 36.35 marks the highest recorded closing price since February 24th. Trading up to $0.78 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on September 11th, WRK gained 5.66% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (WRK as at Sep 16, 2020):
Wednesday's trading range has been $1.72 (4.76%), that's above the last trading month's daily average range of $1.19. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for WRK.
Two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 31.78.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish High-Wave Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Westrock. Out of 15 times, WRK closed lower 53.33% 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 10 trading days, showing a win rate of 60.00% with an average market move of -2.44%.