JEF pushes through key technical resistance level
Jefferies Financial Group Inc. (JEF) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, JEF ended Thursday at 15.21 gaining $1.53 (11.18%) on low volume, significantly outperforming the S&P 500 (6.24%) ahead of today's earnings report. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 14.22, the stock confirmed its breakout through the prior session high after trading up to $1.16 above it intraday.
Daily Candlestick Chart (JEF as at Mar 26, 2020):
JEF is set to report earnings after today's market close. For the upcoming report, analysts expect the company to have earned $0.22 per share. The company's last earnings report was released on Jan. 8, 2020, when Jefferies Financial Group Inc. reported earnings of $0.62 per share beating market expectations by 93.8%.
Thursday's trading range has been $1.79 (12.97%), that's above the last trading month's daily average range of $1.39. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for JEF.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 14.14 (now S1), which is likely to act as support going forward. The last time this happened on March 4th, JEF actually lost -4.89% on the following trading day.
Though Jefferies Financial is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day before Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for Jefferies Financial. Out of 29 times, JEF closed lower 58.62% of the time on the next trading day after the market condition occurred.