KDP closes higher for the 3rd day in a row
Keurig Dr Pepper Inc. (KDP) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, KDP finished the month 5.52% higher at 27.92 after gaining $0.14 (0.5%) today on high volume, slightly outperforming the S&P 500 (0.48%). Today's close at 27.92 marks the highest recorded closing price since March 2nd. Trading up to $0.33 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (KDP as at May 29, 2020):
Friday's trading range has been $0.64 (2.3%), that's slightly above the last trading month's daily average range of $0.60. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for KDP.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on April 21st, KDP gained 3.47% on the following trading day.
Prices are trading close to the key technical resistance level at 28.44 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 28.45 where further buy stops could get triggered. With prices trading close to this year's high at 29.55, upside momentum might accelerate should the share be able to break out to new highs for the year. Trading close to March's high at 28.51 we could see further upside momentum if potential buy stops at the level get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Keurig Dr. Out of 211 times, KDP closed higher 49.29% 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 57.35% with an average market move of 0.68%.