JWN closes lower for the 2nd day in a row
Nordstrom Inc. (JWN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JWN finished the month -11.62% lower at 13.69 after losing $0.27 (-1.93%) today, strongly underperforming the S&P 500 (0.77%). Today's close at 13.69 marks the lowest recorded closing price since April 3rd. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (JWN as at Jul 31, 2020):
Friday's trading range has been $0.63 (4.5%), that's below the last trading month's daily average range of $0.83. 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 JWN.
After having been unable to move lower than 13.62 in the prior session, the stock found buyers again around the same price level today at 13.52. The last time this happened on Tuesday, JWN gained 1.55% on the following trading day.
Crossing below the lower Bollinger Band for the first time since Tuesday, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 15.10 or signal the beginning of a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 14.72 where further buy stops might get activated. With prices trading close to this year's low at 12.27, downside momentum could speed up should the share break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Nordstrom. Out of 148 times, JWN closed higher 59.46% 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 four trading days, showing a win rate of 58.78% with an average market move of -0.45%.