JPM closes lower for the 2nd day in a row
JP Morgan Chase & Co. (JPM) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JPM ended the week 4.16% higher at 89.47 after edging lower $0.70 (-0.78%) today on low volume, underperforming the Dow Indu. (-0.04%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 89.67, JP Morgan confirmed its breakout through the prior session low after trading up to $0.95 below it intraday.
Daily Candlestick Chart (JPM as at May 22, 2020):
Friday's trading range has been $1.64 (1.82%), that's far below the last trading month's daily average range of $2.68. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JPM.
Prices are trading close to the key technical support level at 88.49 (S1).
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 92.39 where further buy stops could get activated. As prices are trading close to May's high at 94.21, upside momentum might accelerate should the stock mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for JP Morgan. Out of 345 times, JPM closed higher 54.20% 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 60.58% with an average market move of 1.25%.