KMI closes below its opening price unable to hold early session gains
Kinder Morgan Inc. (KMI) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
KMI ended the week 11.34% higher at 13.75 after losing $0.73 (-5.04%) today, notably underperforming the S&P 500 (-3.37%). Trading $0.60 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on March 17th, KMI lost -21.04% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (KMI as at Mar 27, 2020):
Friday's trading range has been $0.77 (5.6%), that's far below the last trading month's daily average range of $1.35. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for KMI.
Three candlestick patterns are matching today's price action, the Northern Doji and the Shooting Star which are both known as bearish patterns and one neutral pattern, the Doji.
Prices are trading close to the key technical resistance level at 14.85 (R1). After having been unable to move lower than 13.76 in the prior session, the market found buyers again around the same price level today at 13.59.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 14.85 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for Kinder Morgan. Out of 137 times, KMI closed lower 51.82% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 55.47% with an average market move of 0.47%.