JPM slides to lowest close since July 10th
JP Morgan Chase & Co. (JPM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JPM finished the month 2.74% higher at 96.64 after edging lower $0.38 (-0.39%) today, underperforming the Dow Indu. (0.44%). Today's close at 96.64 marks the lowest recorded closing price since July 10th. Trading up to $1.23 lower after the open, the market 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 in a lackluster session.
Daily Candlestick Chart (JPM as at Jul 31, 2020):
Friday's trading range has been $1.68 (1.74%), that's below the last trading month's daily average range of $2.28. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JPM.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns. The last time a Takuri Line showed up on June 12th, JPM gained 1.38% on the following trading day.
JP Morgan closed below the 20-day moving average at 97.11 for the first time since July 9th.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for JP Morgan. Out of 49 times, JPM closed higher 55.10% 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 67.35% with an average market move of 0.46%.