JCI closes above its opening price after recovering from early selling pressure
Johnson Controls International plc (JCI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
JCI ended Wednesday at 42.90 gaining $0.61 (1.44%), significantly outperforming the S&P 500 (-0.46%). Today's close at 42.90 marks the highest recorded closing price since November 27, 2019. Trading up to $0.46 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on September 4th, JCI actually lost -1.38% on the following trading day. Closing above Tuesday's high at 42.87, the market confirmed its breakout through the previous session high after trading up to $0.26 above it intraday.
Daily Candlestick Chart (JCI as at Sep 16, 2020):
Wednesday's trading range has been $0.89 (2.08%), that's slightly above the last trading month's daily average range of $0.83. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JCI.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After having been unable to move lower than 42.24 in the prior session, the share found buyers again around the same price level today at 42.24.
Crossing above the upper Bollinger Band for the first time since Monday, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 41.24 or signal the beginning of a strong momentum breakout leading to even higher prices.
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 Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Johnson Controls. Out of 545 times, JCI closed higher 54.86% 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 55.05% with an average market move of 0.48%.