KEY closes higher for the 3rd day in a row
KeyCorp (KEY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, KEY finished Thursday at 11.46 gaining $1.64 (16.7%), significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 10.43, KeyCorp confirmed its breakout through the prior session high after trading up to $1.15 above it intraday.
Daily Candlestick Chart (KEY as at Mar 26, 2020):
Thursday's trading range has been $1.94 (19.46%), that's far above the last trading month's daily average range of $1.21. 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 higher than usual for KEY.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 9.64 earlier during the day, the stock bounced off the key technical support level at 9.86 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 12.07 (R1). After having been unable to move lower than 9.61 in the previous session, the share found buyers again around the same price level today at 9.64. The last time this happened on Monday, KEY gained 14.14% on the following trading day.
Although the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the nine 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 468 times, KEY closed higher 56.62% 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 58.12% with an average market move of 0.61%.