JCI dominated by bulls lifting the market higher throughout the day
Johnson Controls International plc (JCI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
JCI ended the week 5.4% higher at 41.96 after surging $0.83 (2.02%) today, significantly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 41.96 marks the highest recorded closing price since December 12, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 41.56, Johnson Controls confirmed its breakout through the previous session high after trading up to $0.40 above it intraday.
Daily Candlestick Chart (JCI as at Feb 14, 2020):
Friday's trading range has been $0.95 (2.31%), that's slightly above the last trading month's daily average range of $0.80. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for JCI.
Three candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern.
The stock managed to close back above the 200-day moving average at 41.45. When this moving average was crossed above the last time on Wednesday, JCI actually lost -1.58% on the following trading day. Prices are trading close to the key technical resistance level at 42.18 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 42.34, upside momentum could speed up should the share be able to break out to new highs for the year. Trading close to December's high at 42.88 we might see further upside momentum if potential buy stops at the level get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. Its common bullish interpretation has been confirmed for Johnson Controls. Out of 21 times, JCI closed higher 71.43% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 47.62% with an average market move of 0.66%.