KHC closes higher for the 2nd day in a row
The Kraft Heinz Company (KHC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, KHC finished the month 4.66% higher at 31.89 after gaining $0.25 (0.79%) today, strongly underperforming the Nasdaq 100 (1.96%). Closing above Monday's high at 31.71, The Kraft confirmed its breakout through the prior session high after trading up to $0.33 above it intraday.
Daily Candlestick Chart (KHC as at Jun 30, 2020):
Tuesday's trading range has been $0.54 (1.71%), that's far below the last trading month's daily average range of $0.79. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KHC.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on May 12th, KHC lost -2.11% on the following trading day.
Buyers managed to take out the key technical resistance level at 31.83 (now S1), which is likely to act as support going forward.
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for The Kraft. Out of 160 times, KHC closed lower 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 short side has been after 10 trading days, showing a win rate of 50.63% with an average market move of -0.58%.