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SHW — Oversold Bullish Reversal
Status: Watch
Scanner score: 35.0/100
Why this was flagged
SHW was identified as a bullish technical setup based on the Oversold Bullish Reversal pattern. The scanner found a score of 35.0/100 using trend alignment, momentum, price action, volume, and risk-management rules.
Trade framework
Position-sizing example
These examples use the distance between the reference entry and stop-loss. They do not account for commissions, slippage, taxes, overnight gaps, or your personal account size.
Exit plan
- Stop-loss: Exit if the stop-loss is reached. Do not move the stop farther away to avoid taking the planned loss.
- Target 1: Consider taking partial profit when Target 1 is reached and reducing risk on the remaining shares.
- Target 2 or trailing exit: Consider closing the remaining position at Target 2, or use a disciplined trailing stop only if the trend remains strong.
- Time exit: Reassess or close a trade that fails to progress within the suggested holding window.
Technical chart
Daily closing price with moving averages and planned trade levels. This chart is a screening aid, not a guarantee of future results.
$1,000 educational outcome examples
These examples use a $1,000 position and fractional shares at the midpoint of the entry zone. Actual results can differ because of market gaps, fills, spreads, commissions, taxes, slippage, and changing conditions.
Easy explanation for new investors
The scanner looked at Sherwin-Williams Company (SHW) and found a pattern called an "Oversold Bullish Reversal." This simple term means the stock price recently dropped enough that it looks undervalued, and signs suggest it might start moving up. The scanner gives it a score of 35 out of 100. This is a moderate score. It checked several rules, including how the stock moves and how many shares are trading. Two main clues stood out. First, the trading volume was 1.41 times the normal daily amount. High volume often means many people are paying attention. Second, a tool called RSI showed a score of 26.81. An RSI below 30 usually means a stock is "oversold," which is a technical hint that it may have gone down too far.
What the price plan means
The current price is $323.29. The plan suggests watching for an entry between $323.29 and $324.95. If the price drops below $313.76, the idea is considered wrong, and a stop loss would be triggered. This is a safety net to limit losses. The goal is to reach two targets: first $342.34 and then $351.87. The plan offers two units of potential reward for every one unit of risk. This means the possible gain is double the possible loss. This setup is valid until September 21, 2026.
What could make the idea fail
The price might keep falling instead of rising. The RSI signal is not a promise of success. Many factors can change, and technical tools do not predict the future with certainty. The stock might not reach the target prices.
Important reminder
This text is for education only. It is not advice to buy or sell stocks. Always check official sources and consult a professional before making financial decisions.
Recent news context
This automated review is separate from the technical score. It summarizes recent related articles and does not predict price movement.
Overall context: Neutral (Moderate confidence)
Recent news focuses on KeyBanc initiating coverage on Sherwin-Williams with a Sector Weight rating and a $365 price target, acknowledging strong U.S. architectural franchise performance despite a depressed housing market. Other analysts, including Morgan Stanley, DA Davidson, and BMO Capital, maintain positive ratings with targets ranging from $395 to $405. However, KeyBanc notes challenges in gaining further market share given Sherwin-Williams' existing 40% North American dominance and slowing EPS growth. Additionally, the company has enforced a five-day in-office mandate tied to a Cleveland tax subsidy agreement, which may impact employee recruitment. The coverage is mixed, highlighting strong valuation support but constrained growth prospects.
Potentially supportive context
- KeyBanc initiated coverage with a $365 price target, acknowledging the strength of the company's U.S. architectural franchise.
- Morgan Stanley, DA Davidson, and BMO Capital have recently provided positive ratings with price targets between $395 and $405.
- The company maintains a dominant 40% market share in North American paint stores.
Risks and caution items
- KeyBanc highlights that high multiples and a depressed housing market create headwinds for valuation expansion.
- Growth in share gains and store openings is challenged by the company's already high 40% market share.
- The company has implemented a strict five-day in-office mandate, which may create challenges for recruitment and retention.
Latest reviewed article: Sep 11, 2026 10:37 am
Recent related articles
KeyCorp upgraded PPG Industries (NYSE:PPG) to a "strong-buy" rating, issuing earnings per share estimates for Q3 2026 ($2.11), Q4 2026 ($1.72), FY2027 ($8.45), and FY2028 ($9.45). The company's average analyst rating remains "Moderate Buy" with a $126 price target. Despite a slight…
KeyBanc has initiated coverage on Sherwin-Williams Co. (NYSE:SHW) with a Sector Weight rating and a $365 price target, acknowledging the stock's high multiples due to the company's strong U.S. architectural franchise, despite a currently depressed housing market. The firm notes that share…
KeyBanc has initiated coverage on Sherwin-Williams Co. (NYSE:SHW) with a Sector Weight rating and a price target of $365.00, acknowledging the stock's elevated multiples due to its strong U.S. architectural franchise despite a currently depressed housing market. The firm notes the company's…
KeyBanc has initiated coverage on Sherwin-Williams Co. (NYSE:SHW) with a Sector Weight rating and a $365 price target, acknowledging the stock's high valuation due to its strong U.S. architectural franchise despite a challenging housing market. The firm highlights concerns about slowing EPS…
Engineers Gate Manager LP has acquired a new stake in PPG Industries (NYSE:PPG) during the second quarter, purchasing 303,875 shares valued at approximately $36.86 million, making it their 27th largest holding. Other institutional investors like California State Teachers Retirement System and BlackRock…
This article examines Sherwin-Williams (NYSE:SHW) as US markets reopen, focusing on its position within blue-chip stocks. The company, known for its coatings and paint products, is evaluated based on its large-scale operations, durable franchises, broad customer reach, and disciplined execution. The report…
A 2020 agreement between Sherwin-Williams and the city of Cleveland, which guaranteed wage taxes in exchange for subsidies for a new downtown headquarters, is likely behind the company's strict five-day in-office mandate. This deal, struck before the widespread adoption of hybrid work,…
Sherwin-Williams employees are now required to work five days a week at their new Cleveland headquarters, a move influenced by a tax deal with the city. This decision and its implications for employees and urban development are discussed on the "Today in…
Important: Some returned articles may describe competitors, industry conditions, or related companies. Open the source before relying on an article.
Scanner confirmations
- Current volume is at least 1.25x the 20-day average volume.
- RSI is near oversold territory with bullish candle confirmation.