Household products/staples producer Newell Rubbermaid (NWL) was the top performer in the SIA S&P 500 Index Report yesterday, soaring 7.9% on a day that the index plunged 3.2%. With this rally, NWL returned to the Green Favored Zone for the first time since March, finishing in 111th place, up 105 positions on the day and up 176 places in the last month.
After spending the second half of 2021 under distribution, Newell Rubbermaid (NWL) shares bottomed out in December and have spent most of 2022 to date base building in the $21.00 to $24.00 range. Yesterday, the shares attracted significant new interest, soaring on a big spike in volume forming a Bullish Engulfing candle and breaking out over $24.00 to signal the start of a new upswing.
Initially, upside resistance may appear near $26.00, where a previous breakout attempt had faltered, followed by previous peaks near $28.25 and $29.25, then the $30.00 round number. Initial support remains in place near $22.00 where the shares started their rally yesterday.
Last month, Newell Rubbermaid (NWL) successfully retested support near $21.05 confirming the lower boundary of the current sideways trend, and into May, they have started to pick up once again. Yesterday’s breakout over $23.25 completed a bullish Double Top pattern signaling the start of a new upswing.
Initially, upside resistance may appear at the top of the current range near $26.20, followed by the June 2021 peak near $28.95, and then $30.70 based on a horizontal count. Initial support appears near $22.35 based on a 3-box reversal.
With a bullish SMAX score of 6, NWL is exhibiting strength against the asset classes.
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