KEY closes higher for the 4th day in a row
KeyCorp (KEY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, KEY ended the week 0.66% higher at 19.73 after edging higher $0.01 (0.05%) today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.11 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (KEY as at Feb 14, 2020):
Friday's trading range has been $0.20 (1.02%), that's below the last trading month's daily average range of $0.35. 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 KEY. Prices continued to consolidate within a tight trading range between 19.48 and 19.99 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 19.59 earlier during the day, the share bounced off the key technical support level at 19.68 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on February 7th, KEY actually lost -0.41% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 19.99 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 19.50 where further sell stops could get triggered. With prices trading close to this year's high at 20.37, upside momentum might speed up should KeyCorp be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for KeyCorp. Out of 473 times, KEY closed higher 56.45% 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 10 trading days, showing a win rate of 58.35% with an average market move of 0.79%.