Sherwin-Williams Shares Slide 4.74% in Two Days as Technicals Signal Bearish Momentum

The Sherwin-Williams (SHW) closed at $357.45, declining 1.09% in the latest session and marking two consecutive down days totaling a 4.74% loss. This downward momentum follows a volatile month where price action exhibited weakening technical structure across multiple indicators. Below is the comprehensive technical analysis based on the provided dataset.
Candlestick Theory
Recent candlestick patterns reveal heightened bearish sentiment. The Sep 8-10 sequence formed a bearish engulfing pattern near the $375 resistance zone, with the latest session printing a long upper wick near $362.24 – indicating rejection at lower highs. Key support now rests at the Aug 11 swing low of $350.50, while resistance tiers appear at $365.78 (Sep 4 high) and $372.43 (Sep 5 close). The failure to hold above $360 suggests distribution near YTD highs.
Moving Average Theory
The 50-day and 100-day moving averages are converging near $358-$360, reflecting lost short-term momentum as price breaches both levels. The 200-day SMA near $345 provides primary long-term support. The current death cross configuration (50-DMA below 100-DMA) combined with price trading under all three key averages signals an intermediate bearish bias. Sustained trade below $358 would confirm breakdown acceleration.
MACD & KDJ Indicators
MACD histograms reside in negative territory with a widening divergence, corroborating strengthening downward momentum. KDJ oscillators show the %K line (20.3) diving below %D (35.7) into oversold territory, though no bullish crossover is evident. Both indicators align in signaling continued bearish pressure with limited reversal signals. Confluence exists in their agreement of negative momentum, but traders should monitor for potential oversold divergences near the $350 support.
Bollinger Bands
Bollinger Band width expanded 18% during the two-day selloff, confirming volatility breakout to the downside. Price currently hugs the lower band near $354.59, characteristic of a downtrend continuation pattern. The sharp band expansion after a period of contraction near $375 suggests follow-through selling pressure may emerge toward the $350-$352 support corridor before mean reversion occurs.
Volume-Price Relationship
Distribution patterns are evident with the two highest volume days in September occurring on down moves (Sep 5: 3.07M shares at -1.82%, Sep 9: 2.21M shares at -3.69%). Latest session volume of 1.78M shares exceeded the 30-day average, validating bearish conviction. Conversely, the Aug 13 rally on 2.88M shares established a high-volume support node at $354.58, now being tested. Volume divergence on minor rebounds undermines bullish reversals.
Relative Strength Index (RSI)
The 14-day RSI at 38.89 resides in neutral territory but displays a bearish momentum signature as it accelerates downward from a Sept 8 peak of 63.50. While not yet oversold (<30), the current trajectory suggests further downside before stabilization. Caution is warranted as RSI can remain depressed during strong trends, though the indicator’s current position does not yet present strong contrarian signals.
Fibonacci Retracement
Applying Fibonacci to the rally from $350.50 (Aug 11 low) to $375.59 (Sept 8 high) shows critical levels. The 38.2% retracement at $366.07 was breached decisively, while the 61.8% level at $359.40 failed to contain the selloff. Confluence exists as the 78.6% retracement at $352.48 aligns with July’s volume-weighted support near $352. No significant Fibonacci support remains until the $350-352 zone, suggesting this region may trigger technical bounces if tested.
Conclusion
Technical deterioration is evident across multiple indicators following SHW’s rejection near $375. Bearish confluence exists between expanding Bollinger Bands, moving average breakdowns, negative MACD/KDJ momentum, and volume-backed distribution. Key support at $350-352 (Aug low + Fibonacci 78.6% + historic VWAP) represents a critical make-or-break zone. A decisive close below $350 would signal trend reversal confirmation, while recovery above $362.24 (recent high) is needed to invalidate the bearish structure. The weight of evidence currently favors downside continuation toward support clusters in the $350-352 range.