WY pushes through key technical resistance level
Weyerhaeuser Company (WY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, WY ended the week 7.28% higher at 30.66 after gaining $0.41 (1.36%) today, strongly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 30.66 marks the highest recorded closing price since January 23rd. Trading up to $0.19 lower after the open, Weyerhaeuser managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, WY gained 0.87% on the following trading day. Closing above Thursday's high at 30.45, the share confirmed its breakout through the previous session high after trading up to $0.21 above it intraday.
Daily Candlestick Chart (WY as at Feb 14, 2020):
Friday's trading range has been $0.53 (1.75%), that's slightly below the last trading month's daily average range of $0.63. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for WY.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 30.57 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 31.58, upside momentum could speed up should the market 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 Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Weyerhaeuser. Out of 40 times, WY closed higher 62.50% 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 seven trading days, showing a win rate of 60.00% with an average market move of -0.48%.