KEY still stuck within tight trading range
KeyCorp (KEY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
KEY finished the week 10.49% higher at 10.74 after edging higher $0.03 (0.28%) today, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (KEY as at May 22, 2020):
Friday's trading range has been $0.40 (3.71%), that's below the last trading month's daily average range of $0.54. Weekly volatility is also lower, being 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 10.19 and 10.95 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading as low as 10.47 during the day, the share found support at the 50-day moving average at 10.51. After having been unable to move above 10.95 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 10.87. The last time this happened on May 15th, KEY actually gained 10.19% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 10.95 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 10.19 where further sell stops might get activated. As prices are trading close to May's high at 11.33, upside momentum could accelerate should KeyCorp mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for KeyCorp. Out of 210 times, KEY closed higher 54.76% 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 two trading days, showing a win rate of 52.38% with an average market move of -0.01%.