KDP dominated by bears dragging the market lower throughout the day
Keurig Dr Pepper Inc. (KDP) Technical Analysis Report for Jun 25, 2020 | by Techniquant Editorial Team
KDP ended Thursday at 28.40 flat, strongly underperforming the S&P 500 (1.1%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (KDP as at Jun 25, 2020):
Thursday's trading range has been $0.74 (2.56%), 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.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices are trading close to the key technical resistance level at 28.59 (R1). After having been unable to move lower than 28.25 in the prior session, the share found buyers again around the same price level today at 28.17. The last time this happened on June 19th, KDP gained 1.67% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to June's low at 27.64, downside momentum could accelerate should the market mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Keurig Dr. Out of 52 times, KDP closed higher 55.77% 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 69.23% with an average market move of 0.90%.