KSS finds buyers again around 44.11
Kohl's Corporation (KSS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, KSS finished the week 1.53% higher at 44.47 after losing $0.17 (-0.38%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (KSS as at Feb 14, 2020):
Friday's trading range has been $0.61 (1.37%), that's below the last trading month's daily average range of $1.08. 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 KSS.
After having been unable to move lower than 44.27 in the prior session, Kohl's found buyers again around the same price level today at 44.11. The last time this happened on Tuesday, KSS gained 2.07% on the following trading day.
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 45.70 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 43.46 where further sell stops could get triggered. With prices trading close to this year's low at 42.50, downside momentum might speed up should the stock break out to new lows for the year. As prices are trading close to February's low at 42.77, downside momentum could accelerate should the market mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Kohl's. Out of 741 times, KSS closed higher 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 long side has been after 10 trading days, showing a win rate of 53.58% with an average market move of 0.29%.