KGX.DE slumps -4.24% closing €1.98 lower
KION Group (KGX.DE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
KGX.DE finished the week -1.8% lower at 44.71 after tanking €1.98 (-4.24%) today, strongly underperforming the MDAX (-0.18%). This is the biggest single-day loss in over four weeks. Closing below Thursday's low at 45.68, the market confirmed its breakout through the previous session low after trading up to €1.67 below it intraday.
Daily Candlestick Chart (KGX.DE as at Jan 11, 2019):
Friday's trading range has been €2.69 (5.8%), that's far above the last trading month's daily average range of €1.91. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for KGX.DE.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Black Candle showed up on January 3rd, KGX.DE actually gained 5.96% on the following trading day.
After trading down to 44.01 earlier during the day, the share bounced off the key technical support level at 44.16 (S1). The failure to close below the support could increase that levels importance as support going forward. The stock closed back below the 20-day moving average at 44.76 for the first time since January 4th. After having been unable to move above 46.85 in the prior session, KION Group ran into sellers again around the same price level today, missing to move higher than 46.70.
Although KGX.DE is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
2018's low at 41.03 is within reach and we could see further downside momentum should the market break out beyond.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for KION Group. Out of 64 times, KGX.DE closed higher 53.13% 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 65.63% with an average market move of 1.57%.