Shares of Whirlpool (WHR) declined for roughly a year but it looks like the downtrend is over. However, a new up phase will need a base pattern -- a retest of the lows and more accumulation -- before more gains are seen.
WHR lost a lot of its value or market cap in 2015. There is a small bottom for WHR in January and February (see the chart above). WHR has rallied above its 50-day moving average and the slope of this sensitive average has turned up. Prices have also rallied above the slower 200-day average. The On-Balance-Volume (OBV) line turned up in early February as buyers of WHR became more aggressive in adding to long positions. Prices are extended on the upside but without a bearish divergence from the momentum study.
In this longer-term view of WHR, we can see that prices have rallied above the 40-week moving average but the average line is still pointed down. The OBV line has inched up on this timeframe and the Moving Average Convergence/Divergence (MACD) oscillator generated a "cover shorts" buy signal with the two lines of the oscillator crossing below the zero line. The good news is that the decline of 2015 is behind WHR. That leaves the bad news, which is that WHR is likely to correct its recent rally, and a base pattern should ensue.