KKR unable to break through key resistance level
KKR & Co. Inc. Class A (KKR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, KKR ended Wednesday at 36.14 gaining $0.11 (0.31%), outperforming the S&P 500 (-0.46%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (KKR as at Sep 16, 2020):
Wednesday's trading range has been $1.02 (2.83%), that's slightly above the last trading month's daily average range of $0.85. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for KKR.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on Monday, KKR gained 2.39% on the following trading day.
Unable to break through the key technical resistance level at 36.72 (R1), KKR & Co. closed below it after spiking up to 36.76 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 37.17, upside momentum could speed up should the stock be able to break out to new highs for the year. As prices are trading close to September's high at 36.91, upside momentum might accelerate should the share mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for KKR & Co.. Out of 214 times, KKR closed higher 55.14% 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 54.21% with an average market move of 0.51%.