Whirlpool Corporation (WHR) Stock Chart Analysis

A member request came through the Idea Chamber last week for WHR. This Whirlpool Corporation (WHR) stock chart analysis will start by focusing on the long-term trend. I will then use shorter-term charts to monitor and for confirmation of the longer-term trend identified.

This heavy load of analysis will run through a spin cycle of short and long-term charts. An emphasis on Elliott waves is used in the long-term analysis. Let’s get started! After all, the request was made last week.

WHR – 20 Year Monthly Chart

This first chart in this Whirlpool Corporation (WHR) stock chart analysis is a 20 year monthly candlestick chart. I like to start with the longest amount of history that the Think or Swim platform provides. In this particular case for Whirlpool Corporation, I think this analysis is very beneficial.

This long-term chart is broken down with an Elliott Wave analysis. I’ve identified the largest Bullish Impulse wave pattern I could on this chart. Wave 1 of the Bullish Impulse wave pattern began in March 2009. It completed the wave pattern in February 2015 when it reached a high of $217.11; this completed Wave 5 of the Bullish Impulse wave pattern.

After Waves 1-5 of a Bullish Impulse wave pattern, Waves A-C of a corrective wave pattern typically develop. The gray shaded box represents the most likely target area for Wave C to complete. WHR is very near completing a bullish 8 wave cycle from an Elliott wave perspective. Wave C typically completes near or around the area of the top of Wave 1, right where I’ve placed the gray shaded box.

One of the main things to monitor for a reversal area in the gray shaded box is the[s2If !current_user_can(access_s2member_level1)]……

If you want to continue reading this Whirlpool Corporation (WHR) stock chart analysis article, you must first login.

I discuss the probable ending point for Whirlpool’s pullback as well as the tools to use to confirm the pullback is over.

If you are not a Trendy Stock Charts member, consider joining today! There are several different subscription plans available.[/s2If][s2If current_user_can(access_s2member_level1)] MACD Histogram indicator on this monthly candlestick chart.

The selling momentum for September is starting to slow and is starting to round off. I typically suggest waiting for at least 1 month where there is decreasing selling momentum before making the initial scale-in purchase of shares. Two months of decreasing selling momentum is recommended to help reduce risk of buying during a downtrend.

WHR – Fibonacci Retracement Tool

This next chart is the same 20 year monthly candlestick chart for WHR. This one has a black Fibonacci Retracement Tool placed on the chart along with the red Fibonacci Extension Tool. These tools are combined to provide a more accurate gray shaded box.

That more accurate gray shaded box falls between the red 100% Target Line from the Fibonacci Extension Tool and the black 61.8% Retracement Line from the Fibonacci Retracement Tool. That resides between $94.80 and $109.48. The $100 price level is a nice rounded number that also should provide support right in that range.

The most common retracement percentage, if WHR is to build off the first Bullish Impulse wave pattern and develop another one, would be a 61.8% Retracement.

WHR – 2nd Bullish Impulse Wave Pattern

This next chart is the same 20 year daily candlestick chart. Long-Term charts can provide a lot of information. This third iteration of the chart has a Fibonacci Extension Tool overlaid on the chart to measure the potential of a 2nd Bullish Impulse wave pattern. The third anchor point for the Fibonacci Extension Tool was placed at the $100 area as an estimated area for the current pullback.

Without being too aggressive, the Target Lines to look for in the next uptrend would be the 61.8% and the 100% Target Lines. The 61.8% Target Line would put WHR’s share price right back at its all-time highs back from 2015.

The first thing WHR’s share price has to do is show signs of a reversal. Before I look at another chart, let’s look at the Point & Figure charts for Whirlpool Corporation. Then I’ll finish with one last chart and a summary. Off to the X’s & O’s…..

WHR – Point & Figure

What do the Point & Figure charts have to say about WHR’s price action? The links click through to P&F Charts on StockCharts.com; Let’s take a peek at their price objectives. After selecting P&F chart and entering the ticker symbol on StockCharts.com, the only other setting I change is the price obj

High/Low P&F Chart – $117 bearish price objective

Closing P&F Chart – $133 bearish price objective (met)

As a reminder, links for P&F charts will bring you to a current P&F Chart for the stock. The price objectives listed in this article are as of the article’s publishing date and may or may not be the same if the article is accessed significantly after the published date.

WHR – Downtrend Trading Channel

This last chart in the Whirlpool Corporation (WHR) stock chart analysis is a 5 year weekly candlestick chart. I’ve illustrated an approximate $30 Trading Channel that WHR’s share price has traded in during this descent.

WHR’s share price sits at an interesting place – right at the bottom of the Trading Channel looking for a rebound and right below a long-term support area where WHR’s share price has rebounded twice before. That long-term support area is around $125.

A couple of general notes to make on the above chart:

• The MACD Histogram shows decreasing selling momentum over the last 4 years during its consolidation, an early indicator of a possible trend reversal
• WHR’s share price developed a Doji-like candlestick last week on decent buying volume right by a support area after 4 weeks of decreasing selling momentum
  • This could lead to a short-term trade opportunity to go long back towards the $136 price level, right where WHR developed a Falling Window candlestick pattern on the heaviest selling volume day in the last 5 years; this will be a formidable resistance area on the first rebound attempt so sell into it until an uptrend is confirmed

If you want to wait until you are sure WHR is back in an uptrend, wait for a breakout out of the top of the Trading Channel on heavy buying volume. You will lose out on some of the initial upside but you will also eliminate the risk of getting into a potential investment or trade too early. I believe the Doji-like candlestick will provide a short-term opportunity to go long, but the amount of buying volume does not appear excessive enough to jump-start a new Bullish Impulse wave pattern.

Whirlpool Corporation (WHR) Stock Chart Analysis Summary

Trying to time the end of a downtrend is not for short-term investing. However, the time to make a long-term investment in WHR appears to be “near” when looking at its 20 year chart. While I don’t talk about it much, Whirlpool also pays a dividend. Getting shares at the lowest possible price helps to increase your dividend percentage rate. Purchasing shares around the $100 price level would help to increase that dividend rate.

But waiting until the MACD Histogram on the monthly candlestick chart shows (or is in the process of showing) 2 consecutive months of decreasing selling momentum, it is best for long-term investors to remain on the sidelines until some additional downtrend risk removes from the equation.

If you are more of a risk taker then consider trading the short-term rebound back towards the $136 area and then see what happens at the Falling resistance area as it is reached.

But if WHR can reverse its downtrend and start building another Bullish Impulse wave pattern, it does have the potential to reach just below its previous highs and the possibility of the $300 price level on a breakout above its previous highs, for whatever reason that may be. Are there reasons to be bullish on WHR now?

Leave your comments and questions below! Good luck trading.

[/s2If]

Company / Topic
Clear Charts
Article Content
Summary