K pushes through key technical resistance level
Kellogg Company (K) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
K finished Thursday at 63.52 gaining $1.97 (3.2%), notably outperforming the S&P 500 (0.25%). Closing above Wednesday's high at 62.54, the share confirmed its breakout through the prior session high after trading up to $1.24 above it intraday.
Daily Candlestick Chart (K as at Aug 15, 2019):
Thursday's trading range has been $2.38 (3.84%), that's far above the last trading month's daily average range of $1.43. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for K.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, K actually lost -1.83% on the following trading day.
Buyers managed to take out the key technical resistance level at 63.19 (now S1), which is likely to act as support going forward. The stock found buyers again today around 61.40 for the third trading day in a row after having found demand at 61.51 in the previous session and at 61.63 two days ago.
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 65.59, upside momentum could speed up should Kellogg be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Kellogg. Out of 585 times, K closed higher 55.90% 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 55.90% with an average market move of 0.20%.