KSS closes above its opening price after recovering from early selling pressure
Kohl's Corporation (KSS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, KSS ended the month 8.06% higher at 20.77 after edging higher $0.11 (0.53%) today on low volume, notably underperforming the S&P 500 (1.54%). Trading up to $0.38 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 20.68, the stock confirmed its breakout through the prior session high after trading up to $0.18 above it intraday.
Daily Candlestick Chart (KSS as at Jun 30, 2020):
Tuesday's trading range has been $0.89 (4.37%), that's far below the last trading month's daily average range of $1.65. Weekly volatility is also lower, being 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 above 20.68 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 20.86. The last time this happened on June 26th, KSS actually gained 10.07% on the following trading day.
Kohl's shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Kohl's. Out of 582 times, KSS closed higher 50.52% 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 three trading days, showing a win rate of 51.20% with an average market move of 0.11%.