KHC finds buyers again around 22.98
The Kraft Heinz Company (KHC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
KHC ended Thursday at 24.77 gaining $1.81 (7.88%), notably outperforming the Nasdaq 100 (5.72%). Closing above Wednesday's high at 24.32, the stock confirmed its breakout through the previous session high after trading up to $3.06 above it intraday.
Daily Candlestick Chart (KHC as at Mar 26, 2020):
Thursday's trading range has been $4.40 (18.93%), that's far above the last trading month's daily average range of $1.85. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for KHC.
The Kraft managed to close above the 20-day moving average at 23.86 for the first time since January 16th. After spiking up to 27.38 during the day, the share found resistance at the 50-day moving average at 26.94. After having been unable to move lower than 22.88 in the prior session, the market found buyers again around the same price level today at 22.98. The last time this happened on March 20th, KHC actually lost -6.78% on the following trading day.
Though KHC is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Its common bearish interpretation has been confirmed for The Kraft. Out of 133 times, KHC closed lower 57.14% 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 10 trading days, showing a win rate of 54.14% with an average market move of -1.30%.