KERN closes above its opening price after recovering from early selling pressure
Akerna Corp. (KERN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
KERN ended Wednesday at 4.49 gaining $0.08 (1.81%), significantly outperforming the S&P 500 (-0.46%). Trading up to $0.10 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (KERN as at Sep 16, 2020):
Wednesday's trading range has been $0.24 (5.37%), that's slightly below the last trading month's daily average range of $0.45. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for KERN.
After moving lower in the prior session, the market managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, three candlestick patterns are matching today's price action, the Bullish High-Wave Candle, the Bullish Spinning Top and the Tweezer Bottom which are known as bullish patterns. The last time a Tweezer Bottom showed up on August 28th, KERN actually lost -2.42% on the following trading day.
Unable to break through the key technical resistance level at 4.56 (R1), Akerna closed below it after spiking up to 4.61 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 4.37 in the prior session, the stock found buyers again around the same price level today at 4.37.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 3.74, downside momentum could speed up should KERN break out to new lows for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Its common bearish interpretation has been confirmed for Akerna. Out of 152 times, KERN closed lower 53.29% 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 two trading days, showing a win rate of 56.58% with an average market move of -1.01%.