KEY closes higher for the 2nd day in a row
KeyCorp (KEY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, KEY finished the month 2.78% higher at 12.18 after gaining $0.31 (2.61%) today, strongly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 12.10, the share confirmed its breakout through the prior session high after trading up to $0.16 above it intraday.
Daily Candlestick Chart (KEY as at Jun 30, 2020):
Tuesday's trading range has been $0.64 (5.45%), that's slightly below the last trading month's daily average range of $0.72. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for KEY.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Even with a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, KEY actually lost -8.91% on the following trading day.
KeyCorp managed to close back above the 50-day moving average at 11.92. Prices are trading close to the key technical resistance level at 12.37 (R1). After having been unable to move lower than 11.65 in the prior session, the stock found buyers again around the same price level today at 11.62.
KEY shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to June's low at 11.59, downside momentum might speed up should the share mark new lows for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for KeyCorp. Out of 91 times, KEY closed lower 52.75% 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 nine trading days, showing a win rate of 51.65% with an average market move of -0.33%.