KMB rockets $6.70 (5.42%) after posting strong earnings
Kimberly-Clark Corporation (KMB) Technical Analysis Report for Apr 22, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, KMB ended Monday at 130.25 surging $6.70 (5.42%) on high volume, notably outperforming the S&P 500 (0.1%) following today's earnings report. This is the biggest single-day gain ever recorded for the stock. Today's close at 130.25 marks the highest recorded closing price since June 28, 2017.
Daily Candlestick Chart (KMB as at Apr 22, 2019):
KMB reported earnings of $1.66 per share before today's market open. With analysts having expected an EPS of $1.52, Kimberly-Clark Corporation surpassed market expectations by 9.2%. The company's last earnings report was released on Jan. 23, 2019, when Kimberly-Clark Corporation reported earnings of $1.6 per share missing market expectations by -4.8%.
Monday's trading range has been $4.54 (3.55%), that's far above the last trading month's daily average range of $1.40. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for KMB.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on April 10th, KMB gained 0.75% on the following trading day.
Crossing above the upper Bollinger Band for the first time since March 22nd, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 123.06 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 11 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post strong Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Kimberly-Clark. Out of 18 times, KMB closed higher 61.11% 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 55.56% with an average market move of 1.05%.