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Can the Johnson Matthey (JMAT) Stock Continue Its Pullback?

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  • The JMAT stock hit its yearly low at £15.5 in August but saw a strong pullback from there to the current levels at £17.7.
  • The stock currently trades close to a strong resistance at £18.03, which can be a crucial level to watch out for.
  • This stock’s current setup looks somewhat strong but higher volumes are needed for a healthy breakout.

Johnson Matthey plc is a British multinational specialty chemicals and sustainable technologies company. This firm’s headquarters are situated in London, England. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

This company’s financials look super strong with a strong revenue number every year and a healthy profit margin. Overall, the company looks strong in terms of financials and fundamentals.

Can the Johnson Matthey (JMAT) Stock Continue Its Pullback?

Technical Analysis of the JMAT Stock

The stock has been highly bearish since the beginning of 2023 and has wiped off 16% of the investors’ wealth just this year. The stock hit its yearly low at £15.5 and saw a sharp recovery after that. The stock trades very close to its resistance and there is no doubt in calling the current levels make or break levels for the stock.

If the stock breaches its current resistance, a good upmove can be expected going ahead. 

If we see the stock price crossing £18, we can expect a healthy and quick move to the £19 level. That level has acted as a resistance for the stock in the past few weeks. 

On the downside, £16.44 is our current support, and looking at the setup, chances for the stock to go below this level look highly low. 

The stock since the past 3 sessions has been facing rejection from £18 levels but has not seen a huge downside. It clearly shows that buyers are very strong in the stock as of now. Stronger volumes on the buying side are currently needed to see a big breakout, which investors have been trying to get for a long time.

A good buying entry can be made above £19.6 with multiple targets starting at £21.

Can the Johnson Matthey (JMAT) Stock Continue Its Pullback?

On an hourly chart, we see a huge gap-up opening very recently in the stock. The stock has been facing rejections from its resistance and £17 has now become a support for the stock. As long as the stock trades above this level, we can remain bullish and expect a good upward move. 

One can be bearish and short the stock only if it breaches its support at £16.44 with heavy selling volumes. Looking at the current setup, chances for such a big downside remain highly low. 

The stock currently trades at crucial make-or-break levels and the next few trading sessions will be highly crucial in deciding the stock’s future.

Analysts have predicted the price to reach £21 in the next 1 year, which is around an 18% upside from the current levels. One should wait for the stock to breach crucial resistance levels before making any move.

Conclusion

The stock has been highly bearish this entire year. It has shown signs of recovery for the first time in the past 8 months. The stock is at crucial levels as of now and the next few weeks become highly crucial for the stock’s fate. One must wait for the stock to reach strong levels before making a move.

Important Technical Levels

  • Major support levels: £17 followed by £16.44.
  • Major resistance levels: £18.3 followed by £19.63.
Disclaimer

The views stated by the author or any person named in this article are purely for educational purposes and do not establish financial or investment advice. Investing or trading in instruments like stocks and crypto involves financial risk and should not be done without doing proper research and analysis.

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