JKHY unable to break through key resistance level
Jack Henry & Associates Inc. (JKHY) Technical Analysis Report for Apr 08, 2020 | by Techniquant Editorial Team
JKHY ended Wednesday at 169.38 gaining $2.20 (1.32%), significantly underperforming the S&P 500 (3.41%). Today's close at 169.38 marks the highest recorded closing price since February 21st. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (JKHY as at Apr 08, 2020):
Wednesday's trading range has been $11.67 (7.35%), that's slightly above the last trading month's daily average range of $11.34. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for JKHY.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 163.49 (S1). Unable to break through the key technical resistance level at 169.79 (R1), the market closed below it after spiking up to 170.50 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on March 16th, JKHY actually gained 5.56% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 173.82 where further buy stops could get activated. With prices trading close to this year's high at 174.93, upside momentum might accelerate should the stock be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Jack Henry. Out of 295 times, JKHY closed higher 55.59% 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 60.68% with an average market move of 0.63%.