An influential sell side firm raised its fundamental opinion of Kilroy Realty Corp. (KRC) Wednesday to buy with an $84 price target. Naturally I want to check out the charts and indicators to see if the timing of this recommendation is wise. Let's check out Kilroy Realty's charts.
In this daily bar chart of KRC, below, we can see a large broadening pattern since September. Prices have swung up and down in wider and wider swings. Broadening patterns can be top reversals or continuation patterns, so let's look deeper. Prices have broken their January lows. KRC is trading below the declining 50-day and declining 200-day moving average lines. The daily On-Balance-Volume (OBV) line shows a decline from last June. The 12-day price momentum study is showing only a very minor divergence in May.
In this weekly Japanese candlestick chart of KRC, below, we see a different view of things. Prices are in a downward trend but the two most recent candles represent a harami and a potential bottom reversal. Prices are in a potential support zone in the $60-$55 area but the slope of the 40-week moving average line is negative. The weekly OBV line shows weakness from April and the 12-week price momentum study only shows the slightest bit of improvement.
In this daily Point and Figure chart of KRC, below, we can see that prices have reached a downside price target of $61.
In this weekly Point and Figure chart of KRC, below, we can see that the software is bearish and is projecting a potential price target in the $40 area.
Bottom line strategy: The charts and indicators above are mixed and in total do not give me enough confidence to become a buyer of KRC.
