KHC dominated by bears dragging the market lower throughout the day
The Kraft Heinz Company (KHC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
KHC finished Wednesday at 31.36 losing $0.61 (-1.91%) on high volume, slightly underperforming the Nasdaq 100 (-1.67%). Today's close at 31.36 marks the lowest recorded closing price since June 26th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 31.88, The Kraft confirmed its breakout through the previous session low after trading up to $0.72 below it intraday.
Daily Candlestick Chart (KHC as at Sep 16, 2020):
Wednesday's trading range has been $1.26 (3.89%), that's above the last trading month's daily average range of $0.89. 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.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 8th, KHC lost -0.35% on the following trading day.
Prices are trading close to the key technical support level at 31.14 (S1). Prices are trading close to the key technical resistance level at 32.23 (R1).
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Its common bearish interpretation has been confirmed for The Kraft. Out of 226 times, KHC closed lower 52.21% 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 56.64% with an average market move of -0.74%.