JPM dominated by bulls lifting the market higher throughout the day
JP Morgan Chase & Co. (JPM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, JPM ended Thursday at 98.12 gaining $6.39 (6.97%), outperforming the Dow Indu. (6.38%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 95.15, JP Morgan confirmed its breakout through the previous session high after trading up to $3.42 above it intraday.
Daily Candlestick Chart (JPM as at Mar 26, 2020):
Thursday's trading range has been $5.03 (5.35%), that's far below the last trading month's daily average range of $7.59. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JPM.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on March 13th, JPM actually lost -14.96% on the following trading day.
Buyers managed to take out the key technical resistance level at 97.44 (now S1), which is likely to act as support going forward. After spiking up to 98.57 during the day, the share found resistance at the 20-day moving average at 98.53.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish. With its 50-day moving average crossing below its 200-day moving average, the stock has entered a so-called "Death Cross" for the first time since May 14, 2019. Showing increasing downward momentum in the short and medium-term the "Death Cross" is known to indicate a potential bear market on the horizon.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for JP Morgan. Out of 79 times, JPM 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 five trading days, showing a win rate of 51.90% with an average market move of -0.05%.