KSU closes above its opening price after recovering from early selling pressure
Kansas City Southern (KSU) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, KSU finished Thursday at 133.48 gaining $3.34 (2.57%), notably underperforming the S&P 500 (6.24%). Trading up to $5.29 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 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 Mar 26, 2020):
Thursday's trading range has been $7.26 (5.44%), that's below the last trading month's daily average range of $10.86. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for KSU.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on March 6th, KSU lost -15.19% on the following trading day.
The market managed to close above the 20-day moving average at 130.00 for the first time since February 21st.
While Kansas City is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 138.97 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Kansas City. Out of 448 times, KSU closed higher 53.79% 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 59.38% with an average market move of 0.63%.