JWN closes within previous day's range after lackluster session
Nordstrom Inc. (JWN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
JWN finished the week -4.34% lower at 15.66 after losing $0.33 (-2.06%) today, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. 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 (JWN as at May 22, 2020):
Friday's trading range has been $1.00 (6.24%), that's below the last trading month's daily average range of $1.43. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JWN. Prices continued to consolidate within a tight trading range between 15.00 and 16.26 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 16.57 (R1). The market found buyers again today around 15.22 for the third trading day in a row after having found demand at 15.01 in the prior session and at 15.00 two days ago. The last time this happened on March 26th, JWN actually lost -10.71% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 16.26 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 15.00 where further sell stops could get triggered. With prices trading close to this year's low at 12.27, downside momentum might speed up should the share break out to new lows for the year.
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. While it is usually interpreted as bearish, it has actually shown to be bullish for Nordstrom. Out of 115 times, JWN closed higher 53.91% of the time on the next trading day after the market condition occurred.