JEF closes lower for the 2nd day in a row
Jefferies Financial Group Inc. (JEF) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JEF finished Tuesday at 20.06 losing $0.09 (-0.45%) on high volume, slightly underperforming the S&P 500 (0.05%). Closing below Monday's low at 20.14, the stock confirmed its breakout through the previous session low after trading up to $0.28 below it intraday.
Daily Candlestick Chart (JEF as at Apr 16, 2019):
Tuesday's trading range has been $0.38 (1.88%), that's slightly below the last trading month's daily average range of $0.38. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JEF.
Prices are trading close to the key technical resistance level at 20.16 (R1).
Although Jefferies Financial is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could accelerate should prices move below the nearby swing low at 19.63 where further sell stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Jefferies Financial. Out of 366 times, JEF closed higher 53.55% 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 50.27% with an average market move of 0.82%.