KMB closes above its opening price after recovering from early selling pressure
Kimberly-Clark Corporation (KMB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, KMB ended the week 0.51% higher at 145.56 after gaining $0.82 (0.57%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.62 lower after the open, Kimberly-Clark managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 7th, KMB gained 0.96% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (KMB as at Feb 14, 2020):
Friday's trading range has been $1.37 (0.95%), that's slightly below the last trading month's daily average range of $2.37. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for KMB. Prices continued to consolidate within a tight trading range between 143.90 and 145.63 where it has been caught now for the last three trading days.
Buyers managed to take out the key technical resistance level at 145.46 (now S1), which is likely to act as support going forward. After having been unable to move lower than 144.18 in the prior session, the share found buyers again around the same price level today at 144.26.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 146.65 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 143.90 where further sell stops could get activated. With prices trading close to this year's high at 149.23, upside momentum might accelerate should the market be able to break out to new highs for the year. As prices are trading close to February's low at 143.11, downside momentum could speed up should the stock mark new lows for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Kimberly-Clark. Out of 576 times, KMB closed higher 57.81% 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 59.72% with an average market move of 0.44%.