JHG dominated by bears dragging the market lower throughout the day
Janus Henderson Group plc (JHG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JHG finished the week -3.44% lower at 25.26 after tanking $1.15 (-4.35%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day loss in over six months. The last time we've seen such an unusually strong single-day loss on January 27th, JHG actually gained 2.35% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (JHG as at Feb 14, 2020):
Friday's trading range has been $1.06 (4.04%), that's far above the last trading month's daily average range of $0.61. 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 JHG.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 24.72 (S1). The market closed below the 20-day moving average at 25.70 for the first time since January 10th.
Although Janus Henderson is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to February's low at 24.34, downside momentum could speed up should the stock mark new lows for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. Its common bearish interpretation has been confirmed for Janus Henderson. Out of 30 times, JHG closed lower 56.67% 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 10 trading days, showing a win rate of 56.67% with an average market move of -2.10%.