Sherwin Williams (SHW-N) had a sharp decline from US$354.01 in December 2021 to US$233.34 in March 2022 (A-B) and then settled in a wide horizontal trading range mostly between US$205 and US$282 (dashed lines). In late-2023, the stock had a breakout from this range reaching a high of US$348.37 (C), pulled back to support near the 40-week Moving Average (40wMA – D) and now appears ready to resume the uptrend (E).
Behaviour indicators including the rising 40wMA and the rising trendline (solid line) confirm the bullish status. There is good support near US$315; only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of US$360 and US$390. The large trading range (dashed lines) supports higher targets.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com