KDP dominated by bears dragging the market lower throughout the day
Keurig Dr Pepper Inc. (KDP) Technical Analysis Report for Jun 24, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, KDP ended Wednesday at 28.40 tanking $0.63 (-2.17%), but still slightly outperforming the S&P 500 (-2.59%). This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on March 16th, KDP actually gained 3.67% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (KDP as at Jun 24, 2020):
Wednesday's trading range has been $0.72 (2.49%), that's slightly above the last trading month's daily average range of $0.68. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KDP.
One bearish candlestick pattern matches today's price action, the Black Candle.
The market closed below the 20-day moving average at 28.49 for the first time since May 15th.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to June's low at 27.64, downside momentum might accelerate should Keurig Dr mark new lows for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Keurig Dr. Out of 67 times, KDP closed higher 59.70% 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 eight trading days, showing a win rate of 70.15% with an average market move of 1.66%.