KMB pushes through Thursday's high
Kimberly-Clark Corporation (KMB) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
KMB finished the month 7.56% higher at 152.04 after gaining $0.08 (0.05%) today, underperforming the S&P 500 (0.77%). Closing above Thursday's high at 152.01, Kimberly-Clark confirmed its breakout through the prior session high after trading up to $0.51 above it intraday.
Daily Candlestick Chart (KMB as at Jul 31, 2020):
Friday's trading range has been $2.10 (1.39%), that's slightly below the last trading month's daily average range of $2.32. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for KMB. Prices continued to consolidate within a tight trading range between 150.00 and 152.73 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Last Engulfing Top Pattern which are both known as bearish patterns.
Prices are trading close to the key technical resistance level at 152.73 (R1). The market found buyers again today around 150.42 for the third trading day in a row after having found demand at 150.21 in the previous session and at 150.00 two days ago. The last time this happened on July 22nd, KMB gained 2.10% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 145.56.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 152.73 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Kimberly-Clark. Out of 81 times, KMB closed higher 54.32% 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 61.73% with an average market move of 0.36%.