Packaging producer Westrock (WRK) has been climbing back up the relative strength rankings in the SIA S&P 500 Index Report, starting deep in the red zone in January, and recently returning to the Green Favored Zone. Yesterday, WRK jumped another 37 spots to 79th place and it is up 231 positions in the last month.
Westrock (WRK) shares staged a major breakout yesterday which completed the second bullish Ascending Triangle pattern of the current recovery trend which started with a successful retest of $40.00 support back in March. A big surge in volume when the shares first started to recover, and a smaller increase in volume as the shares rallied in the face of a falling market yesterday indicate increasing investor interest and accumulation.
Potential upside resistance tests appear near the $60.00 round number, the May 2021 peak near $61.80 and then $64.80 based on a measured move from the recent trading range. Initial support has moved up to the $50.00 round number.
A ten-month downtrend in Westrock (WRK) shares bottomed out in a final flush back in March that was contained by support above $40.00. Since then the shares have been under renewed accumulation, snapping a downtrend line and completing a bullish Spread Triple Top breakout March, followed by bullish Double Top breakouts in April and May. The recent bullish High Pole move up above $54.00 has carried the shares to their highest level since June of 2021.
Next potential resistance appears in the $58.10 to $59.25 zone where previous column highs/lows and vertical/horizontal counts cluster. Initial support appears near $52.05 based on a 3-box reversal.
With a bullish SMAX of 8, WRK is exhibiting strength against the asset classes.
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