October 27 Chart of the Day - Whirlpool
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Whirlpool (WHR) shares fell after the appliance maker cut its full-year guidance despite reporting third quarter results that beat estimates.
Shares were down about 5% today trading briefly under $100. This is dramatically off its $257.68 all time highs (ATH) during the spring of 2021.
From a price action technical analysis perspective, using only support/resistance and trend as taught in our MOST POPULAR course we can see the precipitous drop during the last 18 months. In fact, price could be heading towards a retest of a 13+ year old trend line on its monthly chart.
On the weekly chart, we can see that price recently entered into a Change Control Zone.
Change control zones are one of the five price action tools we teach in our BEST SELLING course when charting anything. By definition, they are an area that represents where neither the bulls nor bears are in charge. Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it. Or, price can trade aimlessly sideways within it. When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.
Additionally, we've identified another trend line that could produce a bounce prior to price reaching that longer term trend line.
If and when it decides to bounce back to the upside we'll initially use the prior support/resistance levels as potential targets and we'll add a traditional High to Low Fibonacci as shared in our FREE Fibonacci Guide starting at $160 down to where ever an actual low may happen to be.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
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