K finds buyers again around 54.40
Kellogg Company (K) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving lower for the 6th day in a row, K finished the week -2.19% lower at 54.55 after losing $0.05 (-0.09%) today on low volume, underperforming the S&P 500 (0.46%). Trading $0.31 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (K as at Jul 12, 2019):
Friday's trading range has been $0.73 (1.33%), that's below the last trading month's daily average range of $1.14. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for K.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 54.62 (R1). After having been unable to move lower than 54.35 in the prior session, the stock found buyers again around the same price level today at 54.40. The last time this happened on July 3rd, K actually lost -1.59% on the following trading day.
Though Kellogg is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the nearby swing low at 54.35 where further sell stops might get activated. As prices are trading close to July's low at 53.17, downside momentum could accelerate should the share mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Kellogg. Out of 591 times, K closed higher 55.33% 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 55.16% with an average market move of 0.14%.