KKR & Co. ( KKR) is probably better known in the business as Kohlberg Kravis Roberts. The company deals in things like private equity, real estate, and infrastructure. All these are above my pay grade and my background in the business, but I do know that they beat expectations when they released their latest quarterly numbers Tuesday morning .
Let's check out the charts which I find interesting at this point in time.
In this daily bar chart of KKR, below, I can see that prices have been making a bottom formation the past year. Prices moved sideways from May, but a new uptrend was initiated in February as prices made a higher high (and a higher low in December). Prices are trading above the rising 50-day moving average line and the bottoming 200-day line.
The 50-day recently moved above the 200-day line for a bullish golden cross. The On-Balance-Volume (OBV) line has been strong from early October and confirms the price gains as this indicator tells us that buyers of KKR are being more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is bullish, but has also narrowed.
In this weekly Japanese candlestick chart of KKR, below, I see a positive-looking picture. Prices have made a bottom formation and have rallied above the 40-week moving average line. This long-term average line now has a positive slope. The weekly OBV line shows strength the past four months. The MACD oscillator is now crossing the zero-line for an outright buy signal.
In this daily Point and Figure chart of KKR, below, I can see a potential upside price target in the $70 area.
In this weekly Point and Figure chart of KKR, below, a higher price target of $87 is indicated.
Bottom line strategy: Traders could probe the long side of KKR on a dip to $56 risking to $52.
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Another increasing concern for equities is that we are likely to see an 'earnings recession'.
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