KDP unable to break through key resistance level
Keurig Dr Pepper Inc. (KDP) Technical Analysis Report for Jul 07, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, KDP finished Tuesday at 29.12 surging $0.56 (1.96%), strongly outperforming the S&P 500 (-1.08%). This is the biggest single-day gain in over a month. Closing above Monday's high at 28.73, the share confirmed its breakout through the previous session high after trading up to $0.77 above it intraday.
Daily Candlestick Chart (KDP as at Jul 07, 2020):
Tuesday's trading range has been $0.93 (3.25%), that's far above the last trading month's daily average range of $0.65. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KDP.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on July 1st, KDP actually lost -0.49% on the following trading day.
Unable to break through the key technical resistance level at 29.30 (R1), the market closed below it after spiking up to 29.50 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
Though the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 29.58, upside momentum could accelerate should Keurig Dr be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Keurig Dr. Out of 334 times, KDP closed higher 50.00% 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 58.08% with an average market move of 0.36%.