KMB unable to break through key resistance level
Kimberly-Clark (KMB) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
KMB ended the week -3.8% lower at 109.14 after gaining $1.01 (0.93%) today, slightly underperforming the S&P 500 (1.42%). Trading up to $1.33 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (KMB as at Oct 12, 2018):
Friday's trading range has been $2.05 (1.88%), that's slightly below the last trading month's daily average range of $2.11. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for KMB.
After moving lower in the prior session, the stock managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns. The last time a Takuri Line showed up on June 6th, KMB gained 1.06% on the following trading day.
Unable to break through the key technical resistance level at 109.19 (R1), Kimberly-Clark closed below it after spiking up to 109.57 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 113.76.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Kimberly-Clark. Out of 61 times, KMB closed higher 60.66% 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 54.10% with an average market move of 0.03%.