WU pushes through Monday's high
Western Union Company (WU) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, WU ended the month 7.99% higher at 21.62 after gaining $0.32 (1.5%) today on low volume, slightly underperforming the S&P 500 (1.54%). Closing above Monday's high at 21.46, the share confirmed its breakout through the previous session high after trading up to $0.26 above it intraday.
Daily Candlestick Chart (WU as at Jun 30, 2020):
Tuesday's trading range has been $0.56 (2.63%), that's slightly below the last trading month's daily average range of $0.63. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for WU.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Despite a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on May 4th, WU gained 2.71% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 21.33 (now S1), which is likely to act as support going forward. After having been unable to move lower than 21.18 in the previous session, the stock found buyers again around the same price level today at 21.16.
Western Union shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 22.08 where further buy stops could get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Western Union. Out of 325 times, WU closed higher 55.69% of the time on the next trading day after the market condition occurred.