JCOM slides to lowest close since March 23rd
j2 Global Inc. (JCOM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
JCOM finished the month -19.27% lower at 63.21 after tanking $6.29 (-9.05%) today on high volume, significantly underperforming the S&P 500 (1.54%). This is the biggest single-day loss in over a month. Today's close at 63.21 marks the lowest recorded closing price since March 23rd. Trading $3.16 higher after the open, j2 Global was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 5th, JCOM actually gained 2.13% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (JCOM as at Jun 30, 2020):
Tuesday's trading range has been $4.77 (7.38%), that's far above the last trading month's daily average range of $2.65. 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 JCOM.
Prices are trading close to the key technical support level at 62.33 (S1).
Crossing below the lower Bollinger Band for the first time since June 24th, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 74.76 or signal the beginning of a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 58.00, downside momentum could speed up should the market break out to new lows for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) below 30" stand out. Its common bullish interpretation has been confirmed for j2 Global. Out of 21 times, JCOM 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 76.19% with an average market move of 2.89%.