KEY finds buyers around 12.45 for the third day in a row
KeyCorp (KEY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
KEY finished Wednesday at 12.71 gaining $0.18 (1.44%), significantly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (KEY as at Sep 16, 2020):
Wednesday's trading range has been $0.53 (4.22%), that's above the last trading month's daily average range of $0.38. 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 slightly lower than usual for KEY. Prices continued to consolidate within a tight trading range between 12.45 and 12.98 where it has been caught now for the last three trading days.
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. The last time this happened on September 1st, KEY gained 1.44% on the following trading day.
After trading as low as 12.45 during the day, the stock found support at the 20-day moving average at 12.48. Unable to break through the key technical resistance level at 12.83 (R1), KeyCorp closed below it after spiking up to 12.98 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. The market found buyers again today around 12.45 for the third trading day in a row after having found demand at 12.49 in the previous session and at 12.45 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to September's high at 13.22, upside momentum could accelerate should the share mark new highs for the month. As prices are trading close to September's low at 12.14, downside momentum might speed up should KEY mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for KeyCorp. Out of 57 times, KEY closed higher 52.63% 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 four trading days, showing a win rate of 57.89% with an average market move of 0.27%.