Sherwin-Williams continues its twelve session slide on Thursday

• Sherwin-Williams was added to the Dow Jones on November 8.
• Since entering the DJIA, shares have lost 4.5%.
• SHW stock has closed below its daily open for 12 straight sessions.
• Shares of the paint company are now below the 100-day moving average for first time since July.

The Sherwin-Williams Company (SHW) continued plodding lower on Thursday, alongside the broader market. The paint and coatings company has now closed lower than its opening price in 12 straight sessions. SHW lost 1.37% on Thursday.

All the major US indices were in close proximity on Thor’s day of the week, but the Dow Jones Industrial Average (DJIA), which includes Sherwin-Williams stock, dropped the least at -0.53%. The US Producer Price Index (PPI) showed that November inflation was growing worse rather than getting better.

Sherwin-Williams stock news and chart

Sherwin-Williams stock has been volatile since being included in the Dow Jones index on November 8 when it replaced Dow (DOW), the chemical company. Since the Dow index is price-weighted, SHW stock makes up approximately 5.3% of the index.

SHW shares have lost nearly 4.5% since joining the Dow despite reaching $400 per share in late November. Shares are still up more than 17% year to date.

There has been little news to sway traders, and it would seem that the recent downtrend is a product of long-time bulls taking profits off the table. 

Ten of the last 12 sessions have noted daily chart losses, and SHW stock now trades below the 100-day Simple Moving Average (SMA). This is the first time that has happened since July 12.

SHW stock now trades firmly within the $358 to $371 high-volume region. If shares fall below $358 and out of this support channel, then expect a move to the 200-day SMA near $343.

SHW daily stock chart