KKR closes below its opening price unable to hold early session gains
KKR & Co. Inc. Class A (KKR) Technical Analysis Report for Dec 14, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, KKR finished the week -4.19% lower at 20.12 after losing $0.67 (-3.22%) today, notably underperforming the S&P 500 (-1.91%). Today's close at 20.12 marks the lowest recorded closing price since April 9th. Trading $0.31 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, KKR lost -1.70% on the following trading day. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (KKR as at Dec 14, 2018):
Friday's trading range has been $0.81 (3.95%), that's slightly above the last trading month's daily average range of $0.75. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for KKR.
Prices broke below the key technical support level at 20.42 (now R1), which is likely to act as resistance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 19.37, downside momentum might accelerate should the market break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for KKR & Co.. Out of 377 times, KKR closed higher 51.99% 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 61.80% with an average market move of 1.38%.