KIM finds buyers at key support level
Kimco Realty Corporation (KIM) Technical Analysis Report for Aug 03, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, KIM finished Monday at 11.09 losing $0.06 (-0.54%) on low volume, significantly underperforming the S&P 500 (0.72%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (KIM as at Aug 03, 2020):
Monday's trading range has been $0.30 (2.7%), that's far below the last trading month's daily average range of $0.45. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KIM. Prices continued to consolidate within a tight trading range between 10.82 and 11.28 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on June 11th, KIM actually gained 9.64% on the following trading day.
After trading down to 10.88 earlier during the day, the market bounced off the key technical support level at 10.96 (S1). The failure to close below the support might increase that levels importance as support going forward. The share was bought again around 10.88 after having seen lows at 10.84, 10.82 and 10.83 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 11.45 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 10.82 where further sell stops might get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Kimco Realty. Out of 449 times, KIM closed higher 60.13% 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 56.35% with an average market move of 0.76%.