KAR climbs to highest close since December 3, 2018
KAR Auction Services Inc (KAR) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, KAR finished Tuesday at 55.42 surging $1.27 (2.35%) on high volume, significantly outperforming the S&P 500 (0.05%). This is the biggest single-day gain in over two weeks. The last time we've seen such an unusually strong single-day gain on March 29th, KAR gained 1.44% on the following trading day. Today's close at 55.42 marks the highest recorded closing price since December 3, 2018.
Daily Candlestick Chart (KAR as at Apr 16, 2019):
Tuesday's trading range has been $2.63 (4.61%), that's far above the last trading month's daily average range of $0.94. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for KAR.
One bearish candlestick pattern matches today's price action, the Black Candle.
KAR Auction managed to close above the 200-day moving average at 55.11 for the first time since December 3, 2018.
Crossing above the upper Bollinger Band for the first time since April 3rd, 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 51.54 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.
Among the eight 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. Its common bullish interpretation has been confirmed for KAR Auction. Out of 173 times, KAR closed higher 52.02% 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 61.85% with an average market move of 0.51%.