JCI closes lower for the 2nd day in a row
Johnson Controls International plc (JCI) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JCI ended the month 7.9% higher at 31.41 after edging lower $0.12 (-0.38%) today on high volume, underperforming the S&P 500 (0.48%). 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 May 29, 2020):
Friday's trading range has been $0.74 (2.38%), that's below the last trading month's daily average range of $1.02. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JCI.
Prices are trading close to the key technical support level at 31.34 (S1).
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 29.22. The last time this happened on January 24th, JCI lost -2.54% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 32.53 where further buy stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Johnson Controls. Out of 311 times, JCI closed higher 53.38% 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 57.56% with an average market move of 0.50%.