JEF breaks back above 20-day moving average
Jefferies Financial Group Inc. (JEF) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, JEF finished the month 6.14% higher at 15.55 after gaining $0.41 (2.71%) today, strongly outperforming the S&P 500 (1.54%) following Monday's earnings report. Trading $0.30 higher after the open, Jefferies Financial was unable to hold its gains as the bears took control ending the day below its opening price.
Daily Candlestick Chart (JEF as at Jun 30, 2020):
JEF reported earnings of $0.16 per share after Monday's market close. With analysts having expected an EPS of $-0.09, Jefferies Financial Group Inc. beat market expectations by 277.8%. The company's last earnings report was released on March 26, 2020, when Jefferies Financial Group Inc. reported earnings of $0.37 per share topping market expectations by 68.2%.
Tuesday's trading range has been $0.72 (4.55%), that's slightly above the last trading month's daily average range of $0.68. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for JEF.
The market managed to close back above the 20-day moving average at 15.46 for the first time since June 23rd. When this moving average was crossed above the last time on June 23rd, JEF actually lost -4.99% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Jefferies Financial. Out of 113 times, JEF closed lower 52.21% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after three trading days, showing a win rate of 53.10% with an average market move of -0.30%.