SHW stock price slumped 4.17% on Wednesday and currently trades at $242.29. The stock price made a breakdown of a consolidation of over 25 intraday sessions. The pre-earning sentiments have turned negative after the breakdown. The earning days are near hence, the stock might turn volatile.
The Sherwin-Williams Company is yet to announce quarterly results on Tuesday, 24th October post which the stock may try to turn positive if earnings outperform the expectations. The Wall Street analysts are expecting the company to report a revenue of $6.021 Billion and earnings of $2.782 Billion.
SHW Stock Price Analysis Over Daily Chart
Moreover, the daily chart shows that the stock price has been falling from a high of $283.80. The SHW stock price tried to sustain near the 50-day and 200-day EMA but made a breakdown after a short-term consolidation near the EMAs.
The technical indicators imply that the SHW stock price has slipped below the 50-day and 200-day EMA both indicating a bearish trend continuation in the short term. The stock price has immediate support near the $235 level up to which the price may show a decline.
The analysts offering a 1-year price forecast for the Sherwin-Williams Company have a maximum estimate of $330 indicating an upside potential of 36.20%. The minimum estimate of the analysts also stands on the bullish side with an upside potential of 2.77% from the CMP.
SHW Stock Price Analysis Over Weekly Chart
The weekly chart illustrates that the SHW price has fallen below the 50-day EMA indicating a bearish outlook in the short term. The SHW stock might decline to the 200-day EMA. The price drop is backed by momentum and it might continue until it reaches a strong support level.
The Technical Indicators Signal Bearish Outlook
The overall technical opinion rating including RSI and MACD is signaling a 24% “sell” with an average short-term outlook on maintaining the current direction.
Conclusion
SHW stock price is bearish in the short term and has broken down from a consolidation near the EMAs. The price has fallen from $283.80 to $242.29 and may decline further to $235. The earnings report on October 24 could affect the price.
The analysts have different estimates for the price in the next year from $247 to $330. The weekly chart shows the price is below the 50-day EMA and has the momentum to drop. The price needs strong support to halt the fall.
Technical Levels
- Support levels: $236.11 and $229.14.
- Resistance levels: $256.66 and $264.29.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/10/19/shw-stock-turns-bearish-before-earnings-shw-price-analysis/