JW-A still stuck within tight trading range
John Wiley & Sons Inc. (JW-A) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
JW-A finished Wednesday at 33.96 gaining $0.23 (0.68%) on high volume, notably outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (JW-A as at Sep 16, 2020):
Wednesday's trading range has been $0.78 (2.31%), that's slightly below the last trading month's daily average range of $0.80. 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 JW-A. Prices continued to consolidate within a tight trading range between 33.05 and 34.60 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Shooting Star. The last time a Shooting Star showed up on September 11th, JW-A actually gained 3.43% on the following trading day.
Prices are trading close to the key technical resistance level at 34.68 (R1). The share ran into sellers again today around 34.54 for the third trading day in a row after having found sellers at 34.45 in the prior session and at 34.60 two days ago.
While John Wiley is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 34.60 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 33.47 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for John Wiley. Out of 183 times, JW-A closed higher 52.46% 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 55.74% with an average market move of 0.49%.