KSS closes within previous day's range after lackluster session
Kohl's Corporation (KSS) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
KSS ended the week -0.34% lower at 17.48 after losing $0.53 (-2.94%) today, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial 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 May 22, 2020):
Friday's trading range has been $1.15 (6.37%), that's below the last trading month's daily average range of $1.48. 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.
One bearish candlestick pattern matches today's price action, the Black Candle.
The stock closed back below the 20-day moving average at 17.77. After having been unable to move above 18.30 in the prior session, Kohl's ran into sellers again around the same price level today, missing to move higher than 18.35. The last time this happened on April 29th, KSS lost -7.93% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 16.31 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Kohl's. Out of 517 times, KSS closed higher 54.74% 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 52.61% with an average market move of -0.01%.