K closes within previous day's range after lackluster session
Kellogg Company (K) Technical Analysis Report for Feb 18, 2020 | by Techniquant Editorial Team
K finished Tuesday at 67.15 losing $0.56 (-0.83%), underperforming the S&P 500 (-0.29%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (K as at Feb 18, 2020):
Tuesday's trading range has been $0.84 (1.25%), that's below the last trading month's daily average range of $1.20. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for K.
After moving higher in the previous session, the share closed lower but above the prior day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on December 30, 2019, K actually gained 0.55% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns.
Although Kellogg is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the close-by swing high at 67.95 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 66.05 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Kellogg. Out of 49 times, K closed higher 53.06% 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 three trading days, showing a win rate of 61.22% with an average market move of 0.15%.