JMAT.L breaks key support level
JMAT.L finished the week 0.24% higher at 3683.00 after tanking £69.00 (-1.84%) today on low volume. This is the biggest single day loss in over a week. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move past the previous day's trading range. Ending with a weak close near the low of the day sets a bearish note for the next session.
Friday's trading range was £78.00 (2.08%), that's above last trading month's daily average range of £61.55. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being below average.
Regardless of a strong opening Johnson Matthey closed below the prior day's open and close, forming a bearish Engulfing Candle.
Breaking below the key support level at 3692.00 today, it is now likely to act as resistance going forward. The stock found buyers again today around 3674.00 for the third trading day in a row after having found demand at 3678.00 in the previous session and at 3668.00 two days ago.
While the share is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive. The market broke below the 50-day moving average at 3686.94 today for the first time since August 6th.
Selling could speed up should prices move below the nearby swing low at 3638.00 where further sell stops might get activated.
While classical technical analysis indicates a bearish sentiment for the next trading day, our quantitative statistics show a different picture being bullish.
Market Conditions for Johnson Matthey
|Close to S1 Support||TQ Pro Members Only|
|Bounced off Technical Support S1||TQ Pro Members Only|
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