KSU closes within previous day's range
Kansas City Southern (KSU) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
KSU finished Monday at 184.49 losing $2.55 (-1.36%), significantly underperforming the S&P 500 (0.27%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (KSU as at Aug 10, 2020):
Monday's trading range has been $6.02 (3.21%), that's slightly below the last trading month's daily average range of $6.67. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for KSU.
Even with a strong opening Kansas City closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
After trading down to 182.32 earlier during the day, the market bounced off the key technical support level at 184.16 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move lower than 183.12 in the prior session, the stock found buyers again around the same price level today at 182.32. The last time this happened on July 30th, KSU gained 9.68% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 164.35.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Kansas City. Out of 458 times, KSU closed higher 59.39% 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 60.70% with an average market move of 1.17%.