WU closes above its opening price after recovering from early selling pressure
Western Union Company (WU) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
WU finished the week -0.3% lower at 20.09 after gaining $0.03 (0.15%) today, slightly outperforming the S&P 500 (-0.16%). Trading up to $0.15 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 June 6th, WU gained 0.95% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (WU as at Jun 14, 2019):
Friday's trading range has been $0.25 (1.25%), that's below the last trading month's daily average range of $0.36. 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 WU. Prices continued to consolidate within a tight trading range between 19.81 and 20.36 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 20.17 (R1). The market was sold again around 20.14 after having seen highs at 20.17, 20.16 and 20.13 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 20.17 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 19.81 where further sell stops could get triggered. With prices trading close to this year's high at 20.56, upside momentum might accelerate should Western Union be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Western Union. Out of 729 times, WU closed higher 54.05% of the time on the next trading day after the market condition occurred.