Technical outlook – Technical analysis may appear complicated on the surface, but it boils down to an analysis of supply and demand in the market to determine where the price trend is headed.
In this instance, Kogan.com (KGN) outlook starting to send negative signals since the posted ‘Gravestone Doji’, Japanese candlestick, was posted 4-days ago.
For those not familiar with this technical term, Japanese candlestick patterns are one of the ways market traders can ‘trade’ based on the price charts.
Depending on the bullish or bearish bias/activity, the candlestick patterns can also set-up the next potential move.
Viewing the gravestone doji, it is straightforward to recognise.
In theory, gravestone doji are reversal trading patterns that can be bearish as well as bullish depending on the position of gravestone doji candlestick.
A gravestone doji is formed when the sellers in the market have primarily managed to push the session’s candlestick from a session high back to the sessions open price.
In more detail, its pattern is formed when the open, low, and closing prices are all near each other with a long upper shadow.
Combining this candlestick signal, along with the technical assessment, can often determine when the next trade opportunity may arise.
After assessing both patterns (candlestick and technical signals), it is viewed as the signals for Kogan.com (KGN) share price is likely to transpire into a bearish trend and stage a pullback to the fill the “breakaway gap” at $11.00. Reassess from there.
Company Overview – Kogan.com is a portfolio of retail and services businesses that includes Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Broadband, Kogan Insurance and Kogan Travel.
Kogan is a leading Australian consumer brand renowned for price leadership through digital efficiency.
The company is focused on making in-demand products and services more affordable and accessible.