KDP breaks back below 20-day moving average
Keurig Dr Pepper Inc. (KDP) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
KDP finished Thursday at 28.53 losing $0.14 (-0.49%), underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. The bears were in full control today, moving the market lower throughout the whole session. 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 Jul 02, 2020):
Thursday's trading range has been $0.42 (1.46%), 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.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on June 8th, KDP lost -0.35% on the following trading day.
The share closed back below the 20-day moving average at 28.56.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the nearby swing low at 27.92 where further sell stops could get activated. Further selling might move prices lower should the market test June's close-by low at 27.64.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Keurig Dr. Out of 212 times, KDP closed higher 57.08% 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 62.74% with an average market move of 0.49%.