KSU closes above its opening price after recovering from early selling pressure
Kansas City Southern (KSU) Technical Analysis Report for Sep 14, 2018 | by Techniquant Editorial Team
KSU finished the week -0.7% lower at 117.24 after gaining $0.57 (0.49%) today on low volume. Trading up to $0.95 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 in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (KSU as at Sep 14, 2018):
Friday's trading range was $1.70 (1.45%), that's below last trading month's daily average range of $2.17. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly below average.
After moving lower in the prior session, Kansas City managed to close higher but below the previous day's open, forming a bullish Harami Candle.
Prices are trading close to a key support level at 116.22. Prices are trading close to the key resistance level at 118.55. After having been unable to move lower than 116.48 in the prior session, the stock found buyers again around the same price level today at 116.23. After trading as low as 116.23 during the day, the market found support at the 20-day moving average at 117.16.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. KSU managed to break above the 20-day moving average at 117.16 today for the first time since September 5th.
With prices trading close to this year's high at 120.34, upside momentum could speed up should the share be able to break out to new highs for the year. As prices are trading close to September's low at 114.13, downside momentum might accelerate should Kansas City mark new lows for the month.