KMI closes above its opening price after recovering from early selling pressure
Kinder Morgan Inc. (KMI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, KMI finished the month -7.05% lower at 14.10 after losing $0.22 (-1.54%) today, significantly underperforming the S&P 500 (0.77%). Today's close at 14.10 marks the lowest recorded closing price since July 9th. Trading up to $0.24 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 Jul 31, 2020):
Friday's trading range has been $0.32 (2.28%), that's below the last trading month's daily average range of $0.41. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KMI.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Takuri Line which are both known as bullish patterns. The last time a Takuri Line showed up on March 13th, KMI actually lost -13.87% on the following trading day.
Prices are trading close to the key technical support level at 14.06 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 14.55 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Kinder Morgan. Out of 114 times, KMI closed lower 53.51% 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 two trading days, showing a win rate of 52.63% with an average market move of -0.19%.