KKR finds buyers at key support level
KKR & Co. Inc. Class A (KKR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, KKR finished the month 14.54% higher at 35.37 after losing $0.04 (-0.11%) today, underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (KKR as at Jul 31, 2020):
Friday's trading range has been $0.82 (2.31%), that's slightly above the last trading month's daily average range of $0.74. 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 lower than usual for KKR.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Hanging Man.
After trading down to 34.85 earlier during the day, the stock bounced off the key technical support level at 35.24 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 35.70 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 35.67. The last time this happened on Tuesday, KKR actually gained 2.72% on the following trading day.
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 35.98 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 34.42 where further sell stops might get triggered.
Among the seven 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 KKR & Co.. Out of 422 times, KKR closed higher 56.16% 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 57.35% with an average market move of 0.47%.