KSU pops to highest close since February 21st
Kansas City Southern (KSU) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
KSU ended the month 15.11% higher at 171.85 after surging $15.16 (9.68%) today on high volume, significantly outperforming the S&P 500 (0.77%). This is the biggest single-day gain in over four months. Today's close at 171.85 marks the highest recorded closing price since February 21st. Closing above Thursday's high at 157.83, Kansas City confirmed its breakout through the prior session high after trading up to $26.33 above it intraday.
Daily Candlestick Chart (KSU as at Jul 31, 2020):
Friday's trading range has been $31.98 (20.53%), that's far above the last trading month's daily average range of $5.29. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for KSU.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on May 19th, KSU actually gained 4.29% on the following trading day.
After trading as low as 152.18 during the day, the share found support at the 20-day moving average at 153.97.
Crossing above the upper Bollinger Band for the first time since July 17th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 153.97 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Up Move" stand out. Its common bullish interpretation has been confirmed for Kansas City. Out of 202 times, KSU closed higher 53.96% 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 60.89% with an average market move of 1.08%.