KKR Surges 4.60% to $125.98 as Bullish Reversal Pattern Emerges After 6.93% Two-Day Rally

KKr has demonstrated notable strength in recent trading, rising 4.60% to close at $125.98 on October 14, 2025, following a 2.22% gain the previous session. This two-day rally of 6.93% recovers a significant portion of the preceding sharp decline observed on October 10th (-5.03%).
Candlestick Theory
The recent action forms a notable bullish reversal pattern. The October 10th session printed a long red candle closing near its low, signaling capitulation. The subsequent two green candles, closing near their highs and breaking above the prior day's high, form a strong Bullish Engulfing pattern, suggesting a potential short-term bottom near $117.65. Resistance now appears near $127.15 (October 14th high), with critical support established around $117.65-$118.02 (October 10th low and October 13th low).
Moving Average Theory
Current price ($125.98) sits above the calculated 50-day Exponential Moving Average (EMA ≈ $124.50), signaling a potential shift to a near-term bullish bias. However, it remains below the 100-day EMA (≈ $127.80) and the significant 200-day EMA (≈ $135.20). This configuration suggests the intermediate (100-day) and long-term (200-day) trends remain bearish, but the short-term downtrend may be pausing or reversing after the oversold bounce. A sustained move above the 100-day EMA would strengthen the short-term bullish case.
MACD & KDJ Indicators
The MACD (12,26,9) shows the MACD line crossing above the Signal line in negative territory, generating a bullish crossover signal, though confirmation with positive MACD is pending. The KDJ (9,3,3) reflects an overbought condition: the %K line (≈83) and %D line (≈79) are both above the 80 threshold, indicating potential near-term exhaustion or consolidation. This divergence exists – MACD signaling emerging bullish momentum while KDJ warns of short-term overbought conditions – requiring caution against immediate new longs.
Bollinger Bands
Price has rebounded from the lower band (≈ $118.30) touched on October 10th/13th and is now approaching the middle band (20-day SMA ≈ $126.70). The recent contraction in bands prior to the sharp move down signaled subdued volatility, which then expanded on the downside move. The current rally is testing the middle band; a decisive break above could target the upper band (≈ $132.10). The bands are beginning to expand again, suggesting volatility is returning.
Volume-Price Relationship
The sharp decline on October 10th occurred on significantly elevated volume (6.81M shares), signaling strong selling pressure. While the subsequent rally days saw positive price action, volume was higher on the initial rebound day (4.70M) but notably lower on the larger 4.60% gain day (6.08M vs 6.81M on down day). This negative volume divergence during the rally is a cautionary signal, questioning the sustainability of the upward move without stronger volume confirmation in subsequent sessions.
Relative Strength Index (RSI)
The 14-day RSI has rebounded sharply from oversold territory (dipping below 30 around October 10th) to its current reading near 56, moving from oversold into neutral territory. While no longer oversold, the RSI is not yet overbought (>70), leaving room for potential further upside momentum. The rapid climb, however, warrants monitoring for signs of deceleration. The oversold reading on October 10th offered a timely warning of a possible rebound.
Fibonacci Retracement
Applying Fibonacci retracement to the most significant recent downtrend (from the September 23rd peak ≈ $147.25 to the October 13th low ≈ $118.02) provides key levels. The 38.2% retracement sits at $129.30, the 50% level at $132.63, and the critical 61.8% level at $135.97. The price has recovered to the 23.6% level ($124.82) and closed slightly above it. The next significant resistance is the 38.2% level ($129.30), aligning roughly with the 100-day EMA. This level represents a key confluence resistance zone.
Summary Confluence & Divergence
Confluence exists around key resistance: the $127.15 recent high, the 100-day EMA (~$127.80), and the 38.2% Fibonacci level ($129.30) form a significant resistance band between $127.15 and $129.30. A break above this zone, especially on strong volume, could signal further recovery potential towards $132.60 (50% Fib). However, divergence exists between the potential underlying buying signaled by the MACD crossover and Bullish Engulfing pattern, and the cautionary signals from the low rally volume (sustainability concern) and KDJ overbought reading. The bearish posture of the longer-term MAs also tempers the near-term bullish reversal signal. Traders should watch price action closely at the identified resistance confluence near $127-$129 for directional clues, mindful of the volume divergence requiring validation.