Newell Brands (NWL) looks set for a good 2021

NWL weekly chartThis is the weekly chart for Newell Brands (NWL) on the S&P500 and I have deliberately reduced the chart to a small scale to highlight three things. First, the potential this stock has to recover the highs of 2017. Second, the time accumulation phases can take to develop before a new campaign gets underway, and third, the shape such price action creates. It is also typical of the kind of chart pattern and structure I have sought out over the years where following a fall we see a flattening of price and the patient accumulation of stock. The development of the price action results in a pattern that is often described as a saucer shape which is then validated once we have a break above the areas of resistance that have been created as a result of the accumulation.

2020 was a good year for the stock as it doubled in value following the Covid sell-off in February which saw NWL fall to a low of $10.44.  Since the return to and break from the vpoc at $16.00 we are now in an upwards trend aided by the buying which arrived at the end of December in the minor reaction lower. This has contributed to a solid move higher during January and more importantly has taken NWL through the resistance at $20 per share which is now acting as support.

So definitely another to have on the watchlist for 2021.

By Anna Coulling

Charts from  NinjaTrader and indicators from Quantum Trading

About Anna 2015 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

Be the first to comment

Leave a Reply

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.

» CONTACT ME