KSS pops to highest close since October 3rd
Kohl's Corporation (KSS) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
KSS ended the week 0.58% higher at 72.65 after surging $1.83 (2.58%) today, notably outperforming the S&P 500 (1.42%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on September 4th, KSS actually lost -1.18% on the following trading day. Today's close at 72.65 marks the highest recorded closing price since October 3rd. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (KSS as at Oct 12, 2018):
Friday's trading range has been $1.69 (2.35%), that's below the last trading month's daily average range of $2.22. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for KSS. Prices continued to consolidate within a tight trading range between 70.59 and 74.39 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 74.61 (R1).
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 accelerate should prices move above the close-by swing high at 74.39 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 70.59 where further sell stops could get triggered. Trading close to August's low at 69.69 we might see further downside momentum if potential sell stops at the level get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Up Move" stand out. Its common bullish interpretation has been confirmed for Kohl's Corp.. Out of 204 times, KSS closed higher 53.43% 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 59.31% with an average market move of 1.56%.