(See the video above for Katie’s complete chart breakdown.) Sherwin-Williams (SHW) is reacting to oversold conditions following a corrective phase, showing renewed short-term momentum within its cyclical downtrend channel. Last week’s gap up brought resistance in-line from the 200-day moving average (~$333), above which the next major resistance is in the $370-$380 area. The positive daily MACD indicator for the Dow stock is enhanced by higher lows in the monthly MACD histogram, which means long-term downside momentum has alleviated. The downtrend channel that took hold in December 2024 has come into secular support from the monthly cloud model, denoted by the shading on the chart. Long-term oversold levels were logged by the monthly stochastics ahead of the June low, which may have marked the end of SHW’s cyclical downtrend. Relative to the S & P 500 Index, SHW also shows improved momentum that suggests its trend of underperformance may have ended, noting the ratio made a higher low versus June. Katie Stockton , CMT, is the Founder and Managing Partner of Fairlead Strategies. Access research from Fairlead Strategies for free here . DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
