JLL breaks below key technical support level
Jones Lang LaSalle Incorporated (JLL) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
JLL finished the month -4.4% lower at 98.91 after edging lower $0.16 (-0.16%) today, underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (JLL as at Jul 31, 2020):
Friday's trading range has been $3.90 (3.93%), that's above the last trading month's daily average range of $3.12. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JLL. Prices continued to consolidate within a tight trading range between 94.43 and 99.83 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on July 2nd, JLL actually gained 2.75% on the following trading day.
Prices broke below the key technical support level at 98.95 (now R1), which is likely to act as resistance going forward.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 102.97 where further buy stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Jones Lang. Out of 237 times, JLL closed higher 54.43% 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 58.65% with an average market move of 0.54%.