Is Whirlpool circling the drain?

July 11, 2018 11:10 AM

Whirlpool Corp. (WHR) has continued to make lower lows since failing to take out resistance at $200 on several occasions last summer. WHR is a durable-good laggard; down 10% year-to-date, 16% during the last 12 months and sports a dividend yield of 3%. Earnings momentum is going the right way with back-to-back quarterly gains following quarterly losses of 10.5% (Q3 2017) and 6.3 (Q2 2017). 

The stock is higher five of the last seven weeks, but fell 7.1% the last week of May with the largest weekly volume of the last five years. Whirlpool recorded an ugly bearish engulfing candle with resistance at the 200-day simple moving average, a line that provided support back in 2016 and again last October through this February. Support has now become resistance. Short WHR into the weekly candle at $154.25. 

About the Author

Doug Busch has been trading the U.S. equity markets for two decades using traditional technical analysis, as a trend follower, with an emphasis with Japanese candlesticks. @ChartSmarter