KKR unable to break through key resistance level
KKR & Co. Inc. Class A (KKR) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
KKR ended Thursday at 31.20 gaining $0.35 (1.13%), outperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. 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 (KKR as at Jul 02, 2020):
Thursday's trading range has been $0.79 (2.51%), that's below the last trading month's daily average range of $1.17. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for KKR.
Unable to break through the key technical resistance level at 31.47 (R1), KKR & Co. closed below it after spiking up to 31.63 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish. With its 50-day moving average crossing above its 200-day moving average, the share has entered a so-called "Golden Cross" for the first time since April 7th. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon. When the last "Golden Cross" happened on May 17, 2019, KKR actually lost -0.69% on the following trading day.
Selling could speed up should prices move below the close-by swing low at 30.14 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Golden Cross" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for KKR & Co.. Out of 5 times, KKR closed lower 100.00% 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 80.00% with an average market move of -4.44%.