SJM finds buyers around 118.04 for the third day in a row
J.M. Smucker Company (SJM) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
SJM finished Tuesday at 118.93 losing $0.25 (-0.21%) on low volume, slightly underperforming the S&P 500 (0.05%). Trading $0.61 higher after the open, J. M. Smucker 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 failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SJM as at Apr 16, 2019):
Tuesday's trading range has been $1.82 (1.53%), that's slightly above the last trading month's daily average range of $1.79. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SJM. Prices continued to consolidate within a tight trading range between 118.04 and 120.40 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns. The last time a Bearish High-Wave Candle showed up on March 20th, SJM actually gained 4.22% on the following trading day.
The share found buyers again today around 118.04 for the third trading day in a row after having found demand at 118.11 in the prior session and at 118.18 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 120.55 where further buy stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. Its common bearish interpretation has been confirmed for J. M. Smucker. Out of 25 times, SJM closed lower 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 56.00% with an average market move of -0.10%.