JCI rallies $1.24 (3.33%) after posting strong earnings
Johnson Controls International plc (JCI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
JCI ended the month 12.71% higher at 38.48 after surging $1.24 (3.33%) today on high volume, significantly outperforming the S&P 500 (0.77%) following today's earnings report. Today's close at 38.48 marks the highest recorded closing price since March 5th. Trading $0.83 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, JCI actually gained 3.85% on the following trading day.
Daily Candlestick Chart (JCI as at Jul 31, 2020):
JCI reported earnings of $0.67 per share before today's market open. With analysts having expected an EPS of $0.5, Johnson Controls International plc beat market expectations by 34.0%. The company's last earnings report was released on May 1, 2020, when Johnson Controls International plc reported earnings of $0.42 per share beating market expectations by 10.5%.
Friday's trading range has been $1.84 (4.7%), that's far above the last trading month's daily average range of $0.89. 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.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Johnson Controls. Out of 107 times, JCI closed higher 52.34% 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 58.88% with an average market move of 0.79%.