Sherwin-Williams Dips 0.68% Amid Bearish Technical Signals And Resistance At $346

The Sherwin-Williams (SHW) declined 0.68% in the most recent trading session, closing at $343.36 after oscillating between $341.00 and $345.74. This movement occurred amidst moderate trading volume of 1.81 million shares. The following technical analysis evaluates SHW's price dynamics using a multi-indicator framework.
Candlestick Theory
Recent price action reveals a near-term resistance zone around $348.78–$349.45, established by multiple failed upside attempts in late June. Support is visible near $330.00, validated by the June 18 low of $329.90 and reinforced by the June 23 hammer pattern. The most recent session formed a small-bodied candle within this range, indicating indecision after a brief recovery from oversold conditions. Bearish resistance remains evident at $345.00–$346.00, where three consecutive rejections occurred in late June.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bearish alignment. The 50-day MA currently lies near $350.00, the 100-day MA at $346.00, and the 200-day MA near $352.50, with the price trading below all three. A death cross materialized in late May when the 50-day crossed below the 200-day, reinforcing long-term bearish momentum. The consistent trading below the 100-day MA since early June underscores intermediate-term weakness, while failed tests of the 50-day MA in late June highlight its resistance strength.
MACD & KDJ Indicators
The MACD (12,26,9) shows a persistent negative histogram and bearish crossover below the signal line, reflecting sustained downward momentum. Near-term stochastics via the KDJ indicator (9,3,3) recently exited oversold territory, with the %K line crossing above %D after the June 18 low. However, KDJ readings currently hover near 55-60, demonstrating limited bullish energy during the rebound. This divergence—where price recovery lacked corresponding momentum strength—suggests vulnerability to pullbacks near resistance levels.
Bollinger Bands
Bollinger Bands (20,2) contracted markedly through June, signaling reduced volatility after the sharp selloff from the $360+ zone. The price recently tested the lower band near $330.00 before rebounding toward the midline ($340–$342). The current position near the lower half of the bands, coupled with the contraction, implies potential for directional expansion. A sustained close above $346.00 could trigger band expansion toward the upper boundary near $350.00.
Volume-Price Relationship
Volume analysis reveals significant distribution near resistance. The June 13 decline to $335.88 occurred on high volume (2.80 million shares), confirming bearish conviction. Conversely, the subsequent rebound registered comparatively lighter volume, culminating in a failed test of $348.78 on volume 32% below average. Recent sessions show volume spikes during declines, exemplified by the June 30 selloff, signaling sustained bearish pressure. This volume asymmetry suggests weaker conviction in upside moves versus downside momentum.
Relative Strength Index (RSI)
The 14-day RSI currently prints 37.25, hovering slightly above oversold territory after bottoming at 28 during the June 18 low. While the RSI’s recovery aligns with the price bounce from $330, its failure to breach 60 during the rebound indicates muted buying pressure. Persistent sub-50 readings since early June reinforce the bearish bias. Although not oversold currently, the RSI’s inability to sustain levels above 45 during recovery attempts may signal exhaustion.
Fibonacci Retracement
Applying Fibonacci retracement to the June 4–June 18 decline (swing high: $363.90, swing low: $329.90) reveals key levels. The 38.2% retracement at $342.89 provided initial resistance, breached temporarily but not sustained. Critical resistance now clusters near the 50% level at $346.90, aligning with the June 27 high of $348.78. The 61.8% retracement at $350.91 converges with the 50-day and 200-day MAs, forming a major resistance zone. Current price action near $343.36 positions SHW at the 38.2%-50% retracement midpoint, suggesting indecision between these technical thresholds.
Multiple confluence points strengthen the bearish outlook. Resistance at $346.90–$348.78 aligns Fibonacci retracement, volume-based resistance, and MA resistance from the 50-day and 100-day averages. The RSI’s bearish divergence relative to price and the MACD’s negative signal cross reinforce the resistance probability. Conversely, a significant divergence exists between volume signals and RSI: oversold readings in June triggered a bounce, but recovery volume failed to validate the move. Key near-term support remains $330.00–$329.90, while sustained trade above $350.91—supported by volume expansion—would challenge the bearish structure. For now, SHW’s technical posture favors range-bound trading with bearish resistance dominance.