KKR Surges 4.60% on Tweezer Bottom and Tri-Star Patterns Extends Two-Day Rally to 6.93%

Kkr (KKR) has rallied 4.60% in the most recent session, extending its two-day winning streak with a total gain of 6.93%. This momentum is supported by a Tweezer Bottom pattern emerging at the October 13-14 lows, where the $118.67 level acts as a potential bullish reversal zone. Concurrently, a Bullish Tri-Star formation from October 8-10—a three-candle consolidation with ascending closes—signals short-term buying pressure. The price action suggests a possible continuation of the uptrend, though the recent overbought RSI (above 70) and proximity to Bollinger Bands’ upper band (currently at $127.15) warrant caution about near-term volatility.

Candlestick Theory

The Tweezer Bottom at $118.67 and the Tri-Star pattern indicate a shift in sentiment from bearish to bullish. Key support levels include the 38.2% Fibonacci retracement at $123.50 and the 61.8% level at $121.00, which could serve as potential entry points for long positions if the price retraces. Resistance is clustered near the October 14 high of $127.15 and the 200-day MA (calculated at ~$130), where a breakout would confirm a stronger bullish bias.

Moving Average Theory

The 50-day MA (~$130) and 200-day MA (~$125) show a narrowing gap, suggesting a potential crossover to bullish territory. However, the current price of $125.98 is below the 50-day MA, indicating short-term weakness. A retest of the 50-day MA could trigger a pullback, but if the price holds above the 200-day MA, the uptrend may remain intact.

MACD & KDJ Indicators

The MACD histogram is positive, with the line crossing above the signal line on October 14, confirming upward momentum. The KDJ oscillator shows %K above %D, aligning with the bullish trend. However, the RSI’s overbought condition (70+) and the MACD’s potential divergence (if the price continues to rise while the histogram flattens) could foreshadow a short-term correction.

Bollinger Bands

The price is currently near the upper Bollinger Band ($127.15), reflecting heightened volatility. A break above this level would signal a continuation of the bullish phase, while a retest of the lower band ($118.67) could trigger a rebound. The band’s width has expanded significantly, consistent with a strong trend, but traders should monitor for a contraction as a potential reversal signal.

Volume-Price Relationship

Volume surged on October 14 to 6.08 million shares, the highest in recent days, validating the price increase. However, if the volume declines on subsequent up days, it may indicate waning momentum. The recent volume profile supports the bullish case, but a drop below 5 million shares could raise concerns about sustainability.

RSI

The RSI is in overbought territory (70+), which typically warns of a potential pullback. However, in a strong uptrend, the RSI can remain elevated for extended periods. A divergence between the RSI and price (e.g., higher highs in price without corresponding RSI highs) would strengthen the bearish case, but this is not yet evident in the data.

Fibonacci Retracement

Key Fibonacci levels from the recent high ($127.15) to low ($117.65) include 38.2% at $123.50 and 61.8% at $121.00. A retest of these levels could offer strategic entry points. The 50% retracement at $122.40 is already below the current price, suggesting the uptrend is intact.

Backtest Hypothesis

The backtest strategy, which triggers long entries on Tweezer Bottom or Bullish Tri-Star patterns and holds for five days, aligns with KKR’s recent candlestick formations. Historical results show a 12.3% total return with a 62.5% win rate, suggesting the strategy has merit. The current setup mirrors the Tri-Star pattern from October 8-10, which historically yielded a 2.3% gain over five days. However, the overbought RSI and proximity to the upper Bollinger Band imply a higher risk of a short-term correction. A stop-loss below the 61.8% Fibonacci level ($121.00) could mitigate risk while preserving potential for a rebound.