KL breaks below key technical support level
Kirkland Lake Gold Ltd. (KL) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, KL ended Monday at 44.01 tanking $1.80 (-3.93%), significantly underperforming the S&P 500 (-0.94%). This is the biggest single-day loss in over a month. The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 45.37, Kirkland Lake confirmed its breakout through the previous session low after trading up to $1.56 below it intraday.
Daily Candlestick Chart (KL as at Jul 13, 2020):
Monday's trading range has been $3.18 (6.78%), that's far above the last trading month's daily average range of $1.66. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for KL.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices broke below the key technical support level at 44.23 (now R1), which is likely to act as resistance going forward. After having been unable to move above 47.25 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 46.99. The last time this happened on July 6th, KL actually gained 4.63% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Kirkland Lake. Out of 55 times, KL closed higher 52.73% 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 70.91% with an average market move of 4.83%.