WY closes higher for the 2nd day in a row
Weyerhaeuser Company (WY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, WY ended the month 11.24% higher at 22.46 after gaining $0.28 (1.26%) today, slightly underperforming the S&P 500 (1.54%). Closing above Monday's high at 22.27, the market confirmed its breakout through the prior session high after trading up to $0.34 above it intraday.
Daily Candlestick Chart (WY as at Jun 30, 2020):
Tuesday's trading range has been $0.53 (2.39%), that's far below the last trading month's daily average range of $0.84. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for WY.
Prices are trading close to the key technical support level at 21.92 (S1). After spiking up to 22.61 during the day, the share found resistance at the 20-day moving average at 22.46. The last time this happened on February 12th, WY actually gained 1.68% on the following trading day.
Weyerhaeuser 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 23.00 where further buy stops could get triggered.
Among the four 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 Weyerhaeuser. Out of 316 times, WY closed higher 56.65% 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 54.43% with an average market move of 0.38%.