KL closes higher for the 2nd day in a row
Kirkland Lake Gold Ltd. (KL) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, KL finished the month 7.23% higher at 41.24 after surging $1.87 (4.75%) today on high volume, strongly outperforming the S&P 500 (1.54%). This is the biggest single-day gain in over four weeks. The last time we've seen such an unusually strong single-day gain on June 1st, KL actually lost -3.40% on the following trading day. Today's close at 41.24 marks the highest recorded closing price since May 8th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 39.37, the stock confirmed its breakout through the prior session high after trading up to $1.95 above it intraday.
Daily Candlestick Chart (KL as at Jun 30, 2020):
Tuesday's trading range has been $2.67 (6.81%), that's far above the last trading month's daily average range of $1.57. 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 KL.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 200-day moving average at 40.28 for the first time since May 8th. Prices are trading close to the key technical resistance level at 41.34 (R1). After having been unable to move lower than 38.50 in the previous session, the market found buyers again around the same price level today at 38.65.
Crossing above the upper Bollinger Band for the first time since April 24th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 38.22 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Kirkland Lake. Out of 180 times, KL closed higher 51.11% 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 64.44% with an average market move of 3.90%.