KDP closes within prior day's range after lackluster session
Keurig Dr Pepper Inc. (KDP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
KDP finished the week 3.27% higher at 27.16 after gaining $0.28 (1.04%) today on high volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (KDP as at May 22, 2020):
Friday's trading range has been $0.45 (1.67%), that's below the last trading month's daily average range of $0.67. 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 KDP.
Prices are trading close to the key technical support level at 26.70 (S1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 27.86 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 26.74 where further sell stops might get activated. Trading close to March's high at 28.51 we could see further upside momentum if potential buy stops at the level get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Keurig Dr. Out of 749 times, KDP closed higher 53.40% 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 61.82% with an average market move of 0.90%.