JPM finds buyers again around 98.76
JP Morgan Chase & Co. (JPM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
JPM ended Wednesday at 99.70 gaining $0.42 (0.42%), slightly outperforming the Dow Indu. (0.13%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (JPM as at Sep 16, 2020):
Wednesday's trading range has been $2.37 (2.38%), that's slightly below the last trading month's daily average range of $2.49. 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.
After moving lower in the prior session, the market managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading as low as 98.76 during the day, JP Morgan found support at the 50-day moving average at 99.17. After having been unable to move lower than 99.14 in the prior session, the stock found buyers again around the same price level today at 98.76. The last time this happened on September 11th, JPM gained 1.39% on the following trading day.
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Further selling could move prices lower should the market test August's nearby low at 95.03.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for JP Morgan. Out of 33 times, JPM closed higher 57.58% 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 57.58% with an average market move of 2.31%.