JPM closes lower for the 2nd day in a row
JP Morgan Chase & Co. (JPM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JPM finished the week 0.21% higher at 137.46 after losing $0.42 (-0.3%) today on low volume, slightly underperforming the Dow Indu. (-0.09%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (JPM as at Feb 14, 2020):
Friday's trading range has been $1.25 (0.91%), that's below the last trading month's daily average range of $1.90. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JPM.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 138.23 (R1). After having been unable to move above 138.34 in the prior session, JP Morgan ran into sellers again around the same price level today, failing to move higher than 138.19. The last time this happened on Monday, JPM actually gained 0.19% 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 139.29 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 136.40 where further sell stops could get activated. With prices trading close to this year's high at 141.10, upside momentum might speed up should the market be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for JP Morgan. Out of 247 times, JPM closed higher 53.85% 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 62.35% with an average market move of 0.96%.