JWN closes within prior day's range after lackluster session
Nordstrom Inc. (JWN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JWN finished Thursday at 17.93 edging lower $0.33 (-1.81%), strongly underperforming the S&P 500 (6.24%). Trading $0.89 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (JWN as at Mar 26, 2020):
Thursday's trading range has been $2.19 (12.01%), that's below the last trading month's daily average range of $2.76. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for JWN. Prices continued to consolidate within a tight trading range between 16.59 and 19.87 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical resistance level at 19.22 (R1). Nordstrom found buyers again today around 16.94 for the third trading day in a row after having found demand at 16.61 in the previous session and at 16.59 two days ago. The last time this happened on December 24, 2019, JWN gained 1.81% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 19.87 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Nordstrom. Out of 432 times, JWN closed higher 53.70% 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 five trading days, showing a win rate of 52.08% with an average market move of 0.10%.