JPM closes higher for the 2nd day in a row
JP Morgan Chase & Co. (JPM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, JPM finished the month -3.34% lower at 94.06 after gaining $1.06 (1.14%) today, slightly outperforming the Dow Indu. (0.85%). 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 Jun 30, 2020):
Tuesday's trading range has been $2.09 (2.25%), that's far below the last trading month's daily average range of $3.58. 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 continued to consolidate within a tight trading range between 92.00 and 95.37 where it has been caught now for the last three trading days.
Despite a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Short Candle showed up on April 8th, JPM gained 8.97% on the following trading day.
Prices are trading close to the key technical support level at 92.00 (S1). JP Morgan found buyers again today around 92.57 for the third trading day in a row after having found demand at 92.18 in the prior session and at 92.00 two days ago.
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 could speed up should prices move above the close-by swing high at 98.21 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 92.00 where further sell stops might get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for JP Morgan. Out of 82 times, JPM closed higher 63.41% 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 63.41% with an average market move of 0.92%.