KERN dominated by bulls lifting the market higher throughout the day
Akerna Corp. (KERN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
KERN finished the month -25.8% lower at 6.53 after gaining $0.21 (3.32%) today on low volume, strongly outperforming the S&P 500 (0.77%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 6.48, Akerna confirmed its breakout through the prior session high after trading up to $0.08 above it intraday.
Daily Candlestick Chart (KERN as at Jul 31, 2020):
Friday's trading range has been $0.31 (4.91%), that's far below the last trading month's daily average range of $0.49. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KERN.
In spite of a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on May 6th, KERN gained 3.73% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might speed up should prices move above the close-by swing high at 6.90 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 6.16 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Akerna. Out of 46 times, KERN closed lower 56.52% of the time on the next trading day after the market condition occurred.