KKR breaks below key technical support level
KKR & Co. Inc. Class A (KKR) Technical Analysis Report for Jul 23, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, KKR ended Thursday at 35.05 losing $0.52 (-1.46%), slightly underperforming the S&P 500 (-1.23%). Closing below Wednesday's low at 35.20, the share confirmed its breakout through the previous session low after trading up to $0.41 below it intraday.
Daily Candlestick Chart (KKR as at Jul 23, 2020):
Thursday's trading range has been $0.88 (2.48%), that's slightly below the last trading month's daily average range of $0.92. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for KKR.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on March 31st, KKR lost -6.60% on the following trading day.
Prices broke below the key technical support level at 35.24 (now R1), which is likely to act as resistance going forward. After having been unable to move above 35.65 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 35.67.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 35.88 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 34.37 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for KKR & Co.. Out of 98 times, KKR closed higher 63.27% 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 59.18% with an average market move of 0.98%.