KERN breaks above 20-day moving average for the first time since March 4th
Akerna Corp. (KERN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, KERN ended Thursday at 5.97 gaining $0.93 (18.45%) on high volume, strongly outperforming the S&P 500 (6.24%). Closing above Wednesday's high at 5.48, the share confirmed its breakout through the previous session high after trading up to $0.92 above it intraday.
Daily Candlestick Chart (KERN as at Mar 26, 2020):
Thursday's trading range has been $1.15 (21.74%), that's above the last trading month's daily average range of $0.86. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for KERN.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close above the 20-day moving average at 5.57 for the first time since March 4th. When this moving average was crossed above the last time on March 4th, KERN actually lost -1.97% on the following trading day. Unable to break through the key technical resistance level at 6.30 (R1), Akerna closed below it after spiking up to 6.40 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Akerna. Out of 3 times, KERN closed lower 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 100.00% with an average market move of -33.47%.