KSU closes higher for the 2nd day in a row
Kansas City Southern (KSU) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, KSU finished the month -0.82% lower at 149.29 after gaining $1.65 (1.12%) today, slightly underperforming the S&P 500 (1.54%). Closing above Monday's high at 148.66, Kansas City confirmed its breakout through the previous session high after trading up to $1.37 above it intraday.
Daily Candlestick Chart (KSU as at Jun 30, 2020):
Tuesday's trading range has been $3.28 (2.22%), that's below the last trading month's daily average range of $5.06. 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.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After spiking up to 150.03 during the day, the market found resistance at the 20-day moving average at 149.95. The last time this happened on May 7th, KSU actually gained 4.04% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 150.62 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 144.59 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Kansas City. Out of 329 times, KSU closed higher 52.28% 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 59.27% with an average market move of 0.92%.