KEX finds buyers again around 37.06
Kirby Corporation (KEX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
KEX finished Wednesday at 39.04 surging $1.62 (4.33%), notably outperforming the Dow Comp. (0.17%). This is the biggest single-day gain in over a month. Closing above Tuesday's high at 38.81, the market confirmed its breakout through the previous session high after trading up to $0.72 above it intraday.
Daily Candlestick Chart (KEX as at Sep 16, 2020):
Wednesday's trading range has been $2.47 (6.57%), that's far above the last trading month's daily average range of $1.30. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KEX.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 40.15 (R1). After having been unable to move lower than 37.28 in the prior session, the stock found buyers again around the same price level today at 37.06.
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 41.49. The last time this happened on August 5th, KEX actually lost -2.31% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 40.15 where further buy stops could get activated.
Among the 10 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 Kirby. Out of 66 times, KEX closed higher 63.64% 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 four trading days, showing a win rate of 57.58% with an average market move of 0.31%.