K finds buyers again around 60.92
Kellogg Company (K) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
K finished the week -3.09% lower at 62.09 after gaining $0.72 (1.17%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. 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 May 22, 2020):
Friday's trading range has been $1.24 (2.02%), that's below the last trading month's daily average range of $1.54. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher 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. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on May 6th, K actually lost -2.18% on the following trading day.
Prices are trading close to the key technical resistance level at 62.50 (R1). After having been unable to move lower than 60.72 in the prior session, the stock found buyers again around the same price level today at 60.92.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 63.71.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the nearby swing low at 60.72 where further sell stops might get triggered.
Among the six 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 57.02% 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 55.67% with an average market move of 0.18%.