KKR Is Looking Strong Ahead of Its S&P 500 Inclusion
Usually a stock being added to an index like the S&P 500 will get a lift. Will it be just temporary?
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KKR & Co Inc. KKR manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and, through its strategic partners and hedge funds.
The stock is getting added to the S&P 500 index later this month. Let's check out the charts and indicators of this company to see if any index buyers will be attracted to the stock.
In the daily bar chart of KKR, below, I can see that prices have nearly doubled since the low in October. The shares trade just below the 50-day moving average line but a rally KKR on Monday could change that quickly. KKR trades above the rising 200-day moving average line.
The On-Balance-Volume (OBV) line shows a rise to early March followed by a sideways move. The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line but it has been correcting lower since January.
In the weekly Japanese candlestick chart of KKR, below, I can see an impressive base pattern in 2022 and 2023 before prices broke out on the upside and rallied strongly. KKR trades above the rising 40-week moving average line. The candles show me that a top reversal pattern was made in May but we need to remember that a top reversal can be a turn from up to sideways.
The weekly OBV line shows us a rise from 2022 to early 2024 where it turned sideways or neutral. The MACD oscillator crossed to the downside in March signaling a correction.
In this daily Point and Figure chart of KKR, below, I can see an upside price target in the $110 area. A trade at $110 could refresh the uptrend.
In this weekly Point and Figure chart of KKR, below, I can see an upside price target in the $140 area.
Bottom-line strategy: Inclusion in an index like the S&P 500 means that the stock will likely get a lift from indexes and ETFs including the stock. Institutional investors and individual investors take notice of this kind of news. Normally this kind of news has just a temporary impact on the stock, but you never know. KKR was already well known to institutional accounts. The Point and Figure charts suggest price targets of $110 and $140 are possible.
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