K closes above its opening price after recovering from early selling pressure
Kellogg Company (K) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
K ended Monday at 66.11 gaining $0.80 (1.22%), outperforming the S&P 500 (0.38%). Today's close at 66.11 marks the highest recorded closing price since April 20th. Trading up to $0.56 lower after the open, Kellogg managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 29th, K gained 1.22% on the following trading day. Closing above Friday's high at 65.64, the market confirmed its breakout through the previous session high after trading up to $0.71 above it intraday.
Daily Candlestick Chart (K as at Jun 01, 2020):
Monday's trading range has been $1.38 (2.11%), that's slightly below the last trading month's daily average range of $1.47. 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 lower than usual for K.
Crossing above the upper Bollinger Band for the first time since March 18th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 63.59 or signal the beginning of a strong momentum breakout leading to even higher prices.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to April's high at 67.89 we might see further upside momentum if potential buy stops at the level get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Kellogg. Out of 132 times, K closed lower 52.27% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after eight trading days, showing a win rate of 56.06% with an average market move of -0.35%.