Sherwin-Williams extends twelve-session decline on Thursday

• Sherwin-Williams was added to the Dow Jones on November 8.
• Since its entry into the DJIA, the shares have lost 4.5%.
• SHW stock has closed below its daily open for 12 consecutive sessions.
• Shares of the paint company are now below the 100-day moving average for the first time since July.

The Sherwin-Williams Company (SHW) continued to decline on Thursday, along with the broader market. The paint and coatings company has closed below its opening price in 12 consecutive sessions. SHW lost 1.37% on Thursday.

All major US indices were in close proximity on the week’s Thor day, but the Dow Jones Industrial Average (DJIA), which includes Sherwin-Williams stock, fell the least at -0.53%. The US Producer Price Index (PPI) showed that November inflation was getting worse rather than better.

Sherwin-Williams News and Stock Chart

Sherwin-Williams shares have been volatile since they were included in the Dow Jones index on Nov. 8, when they replaced Dow (DOW)the chemical company. Since the Dow index is price-weighted, SHW stock represents approximately 5.3% of the index.

SHW stock has lost nearly 4.5% since joining the Dow despite hitting $400 per share in late November. Shares are still up more than 17% year to date.

There has been little news to influence traders, and it would appear that the recent downtrend is a product of long-term bulls taking profits.

Ten of the last 12 sessions have seen losses on the daily chart, and SHW stock is now trading below the 100-day SMA. This is the first time this has happened since July 12.

SHW stock is now trading firmly within the high-volume region of $358 to $371. If the stock falls below $358 and breaks out of this support channel, then a move towards the 200-day SMA near $343 is expected.

SHW Stock Daily Chart