WU closes within prior day's range
Western Union Company (WU) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
WU finished the week -1.43% lower at 17.91 after gaining $0.24 (1.36%) today, slightly underperforming the S&P 500 (1.42%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (WU as at Oct 12, 2018):
Friday's trading range has been $0.48 (2.68%), that's above the last trading month's daily average range of $0.36. 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 notably higher than usual for WU. Prices continued to consolidate within a tight trading range between 17.57 and 18.20 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
After having been unable to move lower than 17.59 in the prior session, the stock found buyers again around the same price level today at 17.57. The last time this happened on Tuesday, WU actually lost -2.26% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 18.57.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Western Union. Out of 38 times, WU closed higher 60.53% 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 71.05% with an average market move of 3.23%.