KDP closes higher for the 2nd day in a row
Keurig Dr Pepper Inc. (KDP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, KDP ended the month 1.72% higher at 28.40 after gaining $0.10 (0.35%) today, significantly underperforming the S&P 500 (1.54%). Trading up to $0.14 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 25th, KDP actually lost -0.63% 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 30, 2020):
Tuesday's trading range has been $0.31 (1.1%), that's far below the last trading month's daily average range of $0.65. 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 27.92 and 28.59 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Even with a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle.
Prices are trading close to the key technical resistance level at 28.59 (R1). After having been unable to move above 28.48 in the previous session, Keurig Dr ran into sellers again around the same price level today, missing to move higher than 28.45.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the close-by swing low at 27.92 where further sell stops might get triggered. As prices are trading close to June's low at 27.64, downside momentum could accelerate should KDP mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Keurig Dr. Out of 750 times, KDP closed higher 53.33% 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 62.40% with an average market move of 0.94%.