WU pushes through Thursday's high
Western Union Company (WU) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, WU ended the week 2.4% higher at 22.65 after gaining $0.04 (0.18%) today, significantly outperforming the S&P 500 (-1.12%). Closing above Thursday's high at 22.62, the stock confirmed its breakout through the prior session high after trading up to $0.36 above it intraday.
Daily Candlestick Chart (WU as at Sep 18, 2020):
Friday's trading range has been $0.40 (1.77%), that's below the last trading month's daily average range of $0.50. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WU.
Prices are trading close to the key technical support level at 22.33 (S1). After spiking up to 22.98 during the day, the market found resistance at the 200-day moving average at 22.96. The last time this happened on August 10th, WU lost -0.64% on the following trading day.
Though the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Western Union. Out of 552 times, WU closed higher 53.99% 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 56.70% with an average market move of 0.54%.