Not exactly sure how a bull holds a paint brush because they don’t have opposing thumbs. But even without opposing thumbs, the bulls are holding plenty of Sherwin Williams (SHW). (March 21, 2015)
Here’s a video for you on Sherwin-Williams (NYSE:SHW ). This has been just a monster stock, it’s been one that I’ve been covering for quite a while, I think like the duration of this chart here. I’ve been saying that as the stock had kind of extended above the 50-day moving average, you could see this MACD, moving average convergence/divergence, it’s a momentum and trend indicator, was giving you a little negative divergence,
Don’t sell but watch, because at some point a stock’s going to top. You never know when it is, typically you don’t, and with this negative divergence it was something you just wanted to be careful about. Because a stock that moves this high is ultimately going to start drifting lower and the line of demarcation here was the 50-day moving average.
Well for one day, last Wednesday, the stock moved below that on volume, I think it was a downgrade if I’m not mistaken, I couldn’t tell you and I’m not going to go back and look because I really don’t care that much. They announce earnings on the middle of April; April 16th is when Yahoo Finance has it. In my view that’s the next catalyst for movement on this stock
But after this kind of break on Wednesday the fact that the stock is higher on volume on Friday, like big volume here, that gives me the sense that there’s more buying ready to go. So this is a stock that one of the questions you’re asking yourself as an investor or as a trader as you buy something is, who’s behind me? Like is there other money that’s going to be coming and buying the stock at a higher price than me so I can actually have a profit?
What I’m saying is after this kind of move on Wednesday it just seems to me like this was kind of a washout. As I look at this now, if this stock starts trading above 290.00 again, this is just a really nice continuation of what’s happening already. By the way members you’re hearing me typing this in the background, I’m typing an alert. Those of you that are on the Free Chart, which is fine, love you all, just glad you’re watching the videos; you may want to set a personal alert for $292.00.
That just gives me this indication that when the stock blows through here, and I think it will, that the stock is breaking out and that’s my buy signal, at least my looky look signal. Unless the stock reverses right away it is something that I’m going to want to buy on a move above 292.00.
Members you’ll be getting that alert as a part of our service. Sherwin-Williams (NYSE:SHW ) looks good, a little sideways consolidation but compare this to Home Depot ( NYSE:HD ) and Lowes ( NYSE:LOW ) and some of those other home improvement companies and you’ll see that they’re all getting ready to fire off pretty good.
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