KDP closes below its opening price unable to hold early session gains
Keurig Dr Pepper Inc. (KDP) Technical Analysis Report for Jun 23, 2020 | by Techniquant Editorial Team
KDP finished Tuesday at 29.03 losing $0.16 (-0.55%), underperforming the S&P 500 (0.43%). Trading $0.29 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 11th, KDP lost -0.78% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (KDP as at Jun 23, 2020):
Tuesday's trading range has been $0.56 (1.91%), that's below the last trading month's daily average range of $0.69. 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 continued to consolidate within a tight trading range between 28.57 and 29.58 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 28.59 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 28.59 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Keurig Dr. Out of 509 times, KDP closed higher 57.96% 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 63.06% with an average market move of 0.67%.