JPM closes above its opening price after recovering from early selling pressure
JP Morgan Chase & Co. (JPM) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, JPM finished the week 0.6% higher at 109.82 after gaining $0.28 (0.26%) today on low volume, slightly outperforming the Dow Indu. (-0.07%). Trading up to $0.94 lower after the open, JP Morgan managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (JPM as at Jun 14, 2019):
Friday's trading range has been $1.67 (1.52%), that's slightly above the last trading month's daily average range of $1.57. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for JPM.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 108.63 earlier during the day, the stock bounced off the key technical support level at 108.89 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move above 110.16 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 110.30. The last time this happened on June 3rd, JPM actually gained 3.08% 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 nearby swing high at 111.57 where further buy stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for JP Morgan. Out of 454 times, JPM closed higher 57.71% 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 59.03% with an average market move of 0.68%.