KSU pushes through key technical resistance level
Kansas City Southern (KSU) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, KSU ended the week 1.04% higher at 173.64 after edging higher $0.18 (0.1%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 173.64 marks the highest recorded closing price since July 12, 2000. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (KSU as at Feb 14, 2020):
Friday's trading range has been $2.18 (1.26%), that's below the last trading month's daily average range of $3.26. 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 KSU.
One bearish candlestick pattern matches today's price action, the Shooting Star.
Buyers managed to take out the key technical resistance level at 173.50 (now S1), which is likely to act as support going forward. The last time this happened on January 16th, KSU gained 3.03% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 175.10, upside momentum could accelerate should the market be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Kansas City. Out of 269 times, KSU closed higher 52.79% 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 55.76% with an average market move of 0.54%.