WY finds buyers again around 19.28
Weyerhaeuser Company (WY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
WY ended the week 14.14% higher at 19.78 after gaining $0.33 (1.7%) today, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (WY as at May 22, 2020):
Friday's trading range has been $0.51 (2.62%), that's far below the last trading month's daily average range of $0.96. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WY. Prices continued to consolidate within a tight trading range between 18.77 and 19.93 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 19.80 (R1). After having been unable to move lower than 19.33 in the previous session, the market found buyers again around the same price level today at 19.28. The last time this happened on May 11th, WY actually lost -5.94% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 19.93 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Weyerhaeuser. Out of 73 times, WY closed higher 50.68% 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 58.90% with an average market move of 0.93%.