JWN runs into sellers again around 15.94
Nordstrom Inc. (JWN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
JWN ended the month -3.97% lower at 15.49 after edging lower $0.30 (-1.9%) today on low volume, notably underperforming the S&P 500 (1.54%). Trading $0.33 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 26th, JWN actually gained 7.49% on the following trading day. 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 Jun 30, 2020):
Tuesday's trading range has been $0.64 (4.1%), that's far below the last trading month's daily average range of $1.43. Weekly volatility is also lower, being way 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 14.52 and 15.94 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After having been unable to move above 15.80 in the prior session, Nordstrom ran into sellers again around the same price level today, missing to move higher than 15.94.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 14.52 where further sell stops could get triggered. Further selling might move prices lower should the market test May's nearby low at 14.24.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Nordstrom. Out of 428 times, JWN closed higher 53.27% 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 51.87% with an average market move of 0.09%.