WU runs into sellers again around 24.43
Western Union Company (WU) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, WU finished the month 12.3% higher at 24.28 after gaining $0.05 (0.21%) today, underperforming the S&P 500 (0.77%). Today's close at 24.28 marks the highest recorded closing price since June 9th. 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 Jul 31, 2020):
Friday's trading range has been $0.43 (1.77%), that's below the last trading month's daily average range of $0.60. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for WU.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
After having been unable to move above 24.40 in the prior session, Western Union ran into sellers again around the same price level today, missing to move higher than 24.43. The last time this happened on Tuesday, WU actually gained 7.52% on the following trading day.
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 might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 22.22.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying might move prices higher should the market test June's nearby high at 24.91.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Its common bearish interpretation has been confirmed for Western Union. Out of 69 times, WU closed lower 53.62% 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 55.07% with an average market move of -0.25%.