KKR unable to break through key resistance level
KKR & Co. Inc. Class A (KKR) Technical Analysis Report for Jul 27, 2020 | by Techniquant Editorial Team
KKR ended Monday at 35.20 gaining $0.51 (1.47%), outperforming the S&P 500 (0.74%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 35.08, the share confirmed its breakout through the prior session high after trading up to $0.16 above it intraday.
Daily Candlestick Chart (KKR as at Jul 27, 2020):
Monday's trading range has been $0.82 (2.37%), that's slightly above the last trading month's daily average range of $0.81. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly 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 previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Even with a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 25th, KKR actually lost -5.97% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 35.24 (R1), KKR & Co. closed below it after spiking up to 35.24 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 34.53 in the prior session, the stock found buyers again around the same price level today at 34.42.
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 close-by swing high at 35.67 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 34.37 where further sell stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for KKR & Co.. Out of 63 times, KKR closed higher 60.32% 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 57.14% with an average market move of 0.48%.