KDP dominated by bears dragging the market lower throughout the day
Keurig Dr Pepper Inc. (KDP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, KDP finished Wednesday at 28.43 losing $0.37 (-1.28%), underperforming the S&P 500 (-0.46%). Today's close at 28.43 marks the lowest recorded closing price since June 30th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 28.75, the stock confirmed its breakout through the previous session low after trading up to $0.35 below it intraday.
Daily Candlestick Chart (KDP as at Sep 16, 2020):
Wednesday's trading range has been $0.59 (2.04%), that's slightly above the last trading month's daily average range of $0.51. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below 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 Black Candle.
Keurig Dr closed back below the 100-day moving average at 28.68 for the first time since September 10th. When this moving average was crossed below the last time on September 10th, KDP actually gained 1.05% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Trading close to July's low at 28.32 we might see further downside momentum if potential sell stops at the level get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Keurig Dr. Out of 265 times, KDP closed higher 61.89% 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 61.89% with an average market move of 0.71%.