Korn Ferry (KFY) - Technical Analysis OverviewCurrent Price: $70.27
Date of Analysis: June 13th 2024
Time Frame: Weekly
Chart Observations:
Moving Averages:
EMA 20 (Close): $62.99 - The stock is trading above the 20-week exponential moving average (EMA), indicating a bullish trend in the short term.
EMA 50 (Close): $58.90 - The stock is also well above the 50-week EMA, reinforcing the strength of the current upward trend over the medium term.
Volume Analysis:
Recent weeks have seen a notable increase in trading volume, particularly with significant green volume bars coinciding with price increases. This suggests strong buying interest and potential continuation of the uptrend.
MACD (Moving Average Convergence Divergence):
The MACD line (2.86) is above the signal line (2.73), a bullish indicator. Moreover, the positive histogram values further support the strength of the current bullish momentum.
ADX (Average Directional Index):
With an ADX value of 38.35, this indicates a very strong trend. Values above 25 usually suggest a strong directional movement, enhancing the reliability of the current uptrend.
Price Action:
KFY has shown a consistent uptrend with higher highs and higher lows over recent weeks. The recent peak has pushed the stock to new highs, suggesting a breakout which could lead to further price discovery upward.
Trading Strategy:
Entry Point: Consider buying on any minor pullback towards the 20-week EMA ($62.99), using it as a dynamic support level for better risk-reward ratios.
Stop-Loss: A stop-loss can be strategically placed just below the recent swing low or the 50-week EMA ($58.90) to protect against any unexpected reversals.
Price Target: The initial price target can be set near the next psychological resistance of $73.80, given the breakout pattern. Adjust this target as the price action develops.
Risks:
Volatility: As with any stock exhibiting strong moves, volatility can increase, leading to potential sharp pullbacks.
Market Sentiment: Any adverse macroeconomic news or shifts in market sentiment could disproportionately affect stocks at new highs.
Conclusion:
KFY’s current technical posture is robust, with indicators supporting further upside potential. The stock has maintained a strong bullish trend, backed by increasing volume and positive momentum indicators. Traders should monitor key levels closely and adjust their positions based on actual market movements and forthcoming financial data releases.
Disclaimer
The content provided in this analysis represents the personal views and opinions of the author and should not be interpreted as specific investment advice. This analysis is for informational purposes only and does not constitute a recommendation to buy or sell any securities. While the data and information contained herein are obtained from sources believed to be reliable, accuracy cannot be guaranteed. Investors are advised to conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. The author does not accept liability for any loss or damage arising from the use of this analysis. Please refer to the full terms and conditions of use for more details.
