JCI closes above its opening price after recovering from early selling pressure
Johnson Controls International plc (JCI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, JCI ended Thursday at 27.00 gaining $0.87 (3.33%), significantly underperforming the S&P 500 (6.24%). Trading up to $0.59 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (JCI as at Mar 26, 2020):
Thursday's trading range has been $1.73 (6.55%), that's below the last trading month's daily average range of $2.26. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for JCI.
Prices are trading close to the key technical resistance level at 28.58 (R1). After having been unable to move above 27.37 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 27.55. The last time this happened on March 20th, JCI lost -5.66% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Johnson Controls. Out of 160 times, JCI closed higher 52.50% 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 two trading days, showing a win rate of 54.38% with an average market move of 0.11%.