Whirlpool Corp. ($WHR) has been trending within a well-developed channel for months – and looks poised for another bullish run within its boundaries! Confluence may play a part in the next run to $93.
Confluence of Support
The daily chart shows $WHR is testing a monthly Double Pivot Hot Zone (DPZ), which spans from $81.78 to $82.90. Price responded to this major area of support earlier in the month, which consists of S1 and L3 support, and paved the way to a nice $12 rally.
However, since price has been making routine lower highs during the recent downtrend, the current bounce could be worth about 9 points.
If price continues to hold above this area of confluence ($81.75), we could see a very nice short term advance ahead.
Bullish Hammer
The daily chart also shows that reversal candlesticks have peppered the highs and lows during recent price movement within the downtrending channel, as shown by the signals on the charts.
As it turns out, yesterday’s candlestick was also a bullish hammer formation, which led to a buy signal being generated.
This signal, coupled with the double pivot hot zone, further paves the way to strength ahead.
However, confirmation must first be seen.
If price closes beyond $85, we could be well on our way to the upper trendline at around $93.50.
Otherwise, a close below support will ruin the opportunity.
Also, keep in mind that tomorrow is the last day of the July monthly pivots. Next week, we’ll have a new set of pivots to watch for this stock.
Let’s see what happens!
Cheers!
Frank Ochoa
PivotBoss.com
Follow Frank on Twitter: http://twitter.com/PivotBoss