KEY still stuck within tight trading range
KeyCorp (KEY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, KEY ended the month -1.4% lower at 12.01 after losing $0.20 (-1.64%) today, notably underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (KEY as at Jul 31, 2020):
Friday's trading range has been $0.28 (2.31%), that's far below the last trading month's daily average range of $0.46. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KEY. Prices continued to consolidate within a tight trading range between 11.82 and 12.57 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 12.26 (R1). The share found buyers again today around 11.84 for the third trading day in a row after having found demand at 11.82 in the prior session and at 11.89 two days ago. The last time this happened on July 17th, KEY actually lost -1.97% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 12.57 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 11.82 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for KeyCorp. Out of 289 times, KEY closed higher 52.94% 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 57.79% with an average market move of 0.60%.