KMB closes within previous day's range
Kimberly-Clark Corporation (KMB) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
KMB finished Wednesday at 147.75 gaining $1.27 (0.87%), notably outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (KMB as at Sep 16, 2020):
Wednesday's trading range has been $2.34 (1.59%), that's slightly below the last trading month's daily average range of $2.50. 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.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the share managed to close higher but below the previous day's open, forming a bullish Harami Candle.
Prices are trading close to the key technical support level at 146.10 (S1). Prices are trading close to the key technical resistance level at 149.36 (R1). After having been unable to move lower than 146.39 in the prior session, Kimberly-Clark found buyers again around the same price level today at 146.58. The last time this happened on September 2nd, KMB actually lost -2.72% on the following trading day.
Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the nearby swing high at 149.66 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 146.39 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Kimberly-Clark. Out of 53 times, KMB closed lower 56.60% of the time on the next trading day after the market condition occurred.