KDP dominated by bulls lifting the market higher throughout the day
Keurig Dr Pepper Inc. (KDP) Technical Analysis Report for Jul 01, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, KDP finished Wednesday at 28.67 gaining $0.27 (0.95%), slightly outperforming the S&P 500 (0.5%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 28.45, Keurig Dr confirmed its breakout through the previous session high after trading up to $0.32 above it intraday.
Daily Candlestick Chart (KDP as at Jul 01, 2020):
Wednesday's trading range has been $0.45 (1.59%), that's below the last trading month's daily average range of $0.64. 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.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 19th, KDP actually gained 1.67% on the following trading day.
The market managed to close back above the 20-day moving average at 28.56 for the first time since June 23rd.
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Further selling could move prices lower should the market test June's close-by low at 27.64.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Keurig Dr. Out of 152 times, KDP closed higher 57.24% 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 five trading days, showing a win rate of 54.61% with an average market move of 0.20%.