KDP closes below its opening price unable to hold early session gains
Keurig Dr Pepper Inc. (KDP) Technical Analysis Report for Jun 26, 2020 | by Techniquant Editorial Team
KDP ended the week -1.71% lower at 28.22 after losing $0.18 (-0.63%) today, but still strongly outperforming the S&P 500 (-2.42%). Trading $0.23 higher after the open, Keurig Dr was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, KDP lost -2.17% on the following trading day. 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 Jun 26, 2020):
Friday's trading range has been $0.53 (1.87%), that's below the last trading month's daily average range of $0.66. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above 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 Bearish Spinning Top.
Unable to break through the key technical resistance level at 28.59 (R1), the stock closed below it after spiking up to 28.59 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move above 28.60 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 28.59.
While 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 might accelerate should the share mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Keurig Dr. Out of 386 times, KDP closed higher 55.44% 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 65.28% with an average market move of 0.86%.