--- title: "Technicals | Sherwin-Williams (SHW.US): MACD Death Cross Below Zero Line Adds to Pullback Risk" type: "News" locale: "en" url: "https://longbridge.com/en/news/301282275.md" description: "Sherwin-Williams (SHW.US) has formed a daily moving average convergence divergence (MACD) death cross below the zero line, a signal the pullback is a continuation rather than a first turn off a high. The DIF line crossed under the DEA line on Oct 7, and turnover was about USD 550 million. The stock closed below its 5-, 10-, 20- and 30-day moving averages. The company reports third-quarter 2026 results before the US market opens on Oct 27, and UBS cut its price target to USD 363 from USD 390 on Oct 5 while keeping a Neutral rating; US housing turnover and home renovation demand remain soft. The moving averages are stacked above the price in bearish alignment, though the 6-day Relative Strength Index near 31, a single-digit KDJ J reading and a Commodity Channel Index around -137 suggest selling is stretched and a technical bounce is building. The near-term bias is bearish, and the tells to watch are whether trading volume contracts and whether housing demand firms into the earnings window." datetime: "2026-10-08T13:05:19.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/301282275.md) - [en](https://longbridge.com/en/news/301282275.md) - [zh-HK](https://longbridge.com/zh-HK/news/301282275.md) generator: "portal-rs" --- # Technicals | Sherwin-Williams (SHW.US): MACD Death Cross Below Zero Line Adds to Pullback Risk The daily moving average convergence divergence (MACD) indicator has formed a death cross below the zero line for Sherwin-Williams (SHW.US). The signal points to a pullback that is still in progress, not a first turn off a high. The DIF line crossed below the DEA line on Oct 7, and both now sit under the zero axis. Turnover of about USD 550 million was modestly heavier than the prior session, and the stock settled below its 5-, 10-, 20- and 30-day moving averages. Early gains faded; buyers showed little appetite to chase. The news flow into the Oct 27 report has turned cautious. Sherwin-Williams said on Oct 1 that it will release third-quarter 2026 results before the US market opens that day and hold a call at 10 a.m. Eastern time. Chairman, President and Chief Executive Officer Heidi Petz is among the executives set to discuss fourth-quarter and full-year guidance. On Oct 5, UBS cut its price target to USD 363 from USD 390 while keeping a Neutral rating, a careful read on near-term fundamentals. US housing turnover and home renovation demand remain soft. Consensus looks for fiscal 2026 earnings per share (EPS) of about USD 12.09, up roughly 5.8% year over year. The stock has lost about 4.6% over the past 52 weeks and trails both the S&P 500 and the materials sector. The expansion pipeline has kept running even as the stock drifted lower. Sherwin-Williams finished an expansion of its Statesville, North Carolina plant and brought it into production on Sept 30; it is now the company's largest North American plant. Management has repeated a medium-term goal of opening 80 to 100 new stores a year and reaching USD 25 billion in sales in 2026. Trend and momentum are pulling in opposite directions. The 5-, 10-, 20- and 30-day moving averages are stacked above the price in bearish alignment, and the middle Bollinger band sits above it too, so rallies meet supply quickly. Momentum readings have swung the other way. The 6-day Relative Strength Index (RSI) has eased to about 31, the J line of the KDJ stochastic is in single digits, and the Commodity Channel Index (CCI) has dropped to around -137. The BR line of the ARBR sentiment indicator is deeply oversold. That cluster of oversold readings partly offsets the death cross and is where a bounce would begin. Materials have been weak as a group and coatings peers show no leadership, so the sector offers little lift. The near-term bias is bearish. The death cross and the moving averages overhead keep the pullback alive while the market waits on the Oct 27 report. The operating story is not deteriorating: the Statesville plant is in production and store growth continues. What to watch: how expectations shift before the earnings window, whether trading volume contracts from recent levels, and whether housing turnover and renovation demand firm. A move back above the short-term moving averages would be the first sign the cross is losing its grip. Another leg lower on heavier volume would argue the downswing has further to run. *This content is for informational purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any security or capital markets product. It has been prepared without regard to your individual investment objectives, financial situation, or particular needs. Investing involves risk, including the possible loss of principal; past performance is not indicative of future results. Longbridge and its affiliates accept no liability for any loss arising from reliance on this material.* ### Related Stocks - [SHW.US](https://longbridge.com/en/quote/SHW.US.md) ## Related News & Research - [How Upcoming Earnings Will Impact Sherwin Williams Stock Investors](https://longbridge.com/en/news/302520667.md) - [Sherwin-Williams Targets Growth With Store Expansion, AI and Margin Gains](https://longbridge.com/en/news/300076785.md) - [GRAPHIC-Take Five: AI trade meets the Fed](https://longbridge.com/en/news/302836715.md) - [Iran Is 'Doing Everything They Can to Drive Up' Oil Prices, Says Trump](https://longbridge.com/en/news/302765449.md) - [Western Digital Q1 Revenue Surges 55% YoY, Shares Drop Nearly 7%: Can $330 Support Hold?](https://longbridge.com/en/news/302840204.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**