WU pushes through key technical resistance level
Western Union Company (WU) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, WU finished Thursday at 20.76 gaining $1.52 (7.9%), strongly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 19.82, the market confirmed its breakout through the prior session high after trading up to $1.08 above it intraday.
Daily Candlestick Chart (WU as at Mar 26, 2020):
Thursday's trading range has been $1.76 (9.17%), that's above the last trading month's daily average range of $1.51. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WU.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 20.00 (now S1), which is likely to act as support going forward. The last time this happened on March 17th, WU actually lost -4.48% on the following trading day.
While the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Western Union. Out of 77 times, WU closed lower 59.74% 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 seven trading days, showing a win rate of 51.95% with an average market move of -0.01%.