KNX closes within prior day's range
Knight-Swift Transportation Holdings Inc. (KNX) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
KNX ended Tuesday at 33.58 edging higher $0.05 (0.15%), slightly outperforming the S&P 500 (0.05%). Trading up to $0.47 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (KNX as at Apr 16, 2019):
Tuesday's trading range has been $1.35 (4.11%), that's far above the last trading month's daily average range of $0.86. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KNX.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading as low as 32.37 during the day, Knight-Swift found support at the 200-day moving average at 32.68. The last time this happened on April 10th, KNX gained 1.84% on the following trading day.
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 34.39 where further buy stops could get activated. With prices trading close to this year's high at 35.30, upside momentum might speed up should the market be able to break out to new highs for the year. Further buying could move prices higher should the market test March's close-by high at 34.97. As prices are trading close to April's low at 32.35, downside momentum might accelerate should the stock mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Knight-Swift. Out of 15 times, KNX closed lower 66.67% 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 three trading days, showing a win rate of 66.67% with an average market move of -0.10%.