KERN closes within prior day's range after lackluster session
Akerna Corp. (KERN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
KERN finished the month -5.17% lower at 8.80 after losing $0.12 (-1.35%) today, notably underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (KERN as at Jun 30, 2020):
Tuesday's trading range has been $0.29 (3.27%), that's far below the last trading month's daily average range of $0.94. 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 slightly lower than usual for KERN.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 8.35 (S1). Prices are trading close to the key technical resistance level at 9.44 (R1). After having been unable to move lower than 8.50 in the prior session, the stock found buyers again around the same price level today at 8.62. The last time this happened on June 25th, KERN actually lost -4.71% on the following trading day.
While Akerna is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the nearby swing low at 8.50 where further sell stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for Akerna. Out of 196 times, KERN closed lower 46.43% 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 five trading days, showing a win rate of 58.16% with an average market move of -1.44%.