KERN runs into sellers again around 7.48
Akerna Corp. (KERN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
KERN finished the week -7.32% lower at 7.09 after edging higher $0.03 (0.42%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.35 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (KERN as at Feb 14, 2020):
Friday's trading range has been $0.65 (9.12%), that's slightly below the last trading month's daily average range of $0.66. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for KERN.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After having been unable to move above 7.43 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 7.48. The last time this happened on February 7th, KERN actually gained 2.61% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 8.07.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 6.30 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Akerna. Out of 8 times, KERN closed higher 62.50% 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 62.50% with an average market move of 7.44%.