The turnaround of this beaten-up Dow stock looks for real, says Katie Stockton
Sherwin-Williams is reacting to oversold conditions following a corrective phase, showing renewed short-term momentum within its cyclical downtrend channel.
TL;DR
- Sherwin-Williams (SHW) is showing renewed short-term momentum after being oversold.
- The stock has broken through some short-term resistance, with major resistance in the $370-$380 area.
- Long-term downside momentum has alleviated, as indicated by monthly MACD histogram improvements.
- The downtrend channel has found secular support from the monthly cloud model.
- Monthly stochastics reached long-term oversold levels before the June low, suggesting a potential end to the cyclical downtrend.
- SHW's relative momentum to the S&P 500 is improving, indicating a potential end to its underperformance trend.