JWN stuck within tight trading range
Nordstrom Inc. (JWN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
JWN ended Wednesday at 15.07 gaining $0.35 (2.38%), significantly outperforming the S&P 500 (-0.46%). Trading up to $0.30 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on September 8th, JWN actually lost -5.64% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (JWN as at Sep 16, 2020):
Wednesday's trading range has been $0.78 (5.29%), that's slightly below the last trading month's daily average range of $0.81. 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. Prices continued to consolidate within a tight trading range between 14.42 and 15.31 where it has been caught now for the last three trading days.
After moving lower in the previous session, the market managed to close higher but below the prior day's open, forming a bullish Harami Candle.
Unable to break through the key technical resistance level at 15.10 (R1), Nordstrom closed below it after spiking up to 15.22 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move above 15.31 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 15.22.
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 15.31 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 14.17 where further sell stops might get triggered. Trading close to July's low at 13.52 we could see further downside momentum if potential sell stops at the level get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Nordstrom. Out of 64 times, JWN closed higher 57.81% 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 56.25% with an average market move of 1.64%.