K still stuck within tight trading range
Kellogg Company (K) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, K ended the month 1.15% higher at 66.06 after gaining $0.98 (1.51%) today, slightly underperforming the S&P 500 (1.54%). Trading up to $0.53 lower after the open, Kellogg managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (K as at Jun 30, 2020):
Tuesday's trading range has been $1.23 (1.88%), that's below the last trading month's daily average range of $1.56. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for K. Prices continued to consolidate within a tight trading range between 63.68 and 66.24 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on May 26th, K actually gained 4.01% on the following trading day.
The stock managed to close back above the 20-day moving average at 65.81 for the first time since June 23rd.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
As prices are trading close to June's high at 68.55, upside momentum might accelerate should the share mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Kellogg. Out of 154 times, K closed higher 55.19% 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 two trading days, showing a win rate of 56.49% with an average market move of 0.06%.