Kinder Morgan (NYSE: KMI) KMI stock surpassed the falling channel and exited the trendline of $17. Moreover, the price action highlights the buying interest which led to a flip from the downside zone of $16.
Recently, KMI stock posted the Q3 earning data which was below estimates, where net income fell by 6.99% to $532.00 Million and the total revenues fell by 22.69% to $3.91 Billion (YoY). However, the EBITDA margins increased by 9.76% to $1.50 Billion. Additionally, the market reacted to it negatively and if KMI stock slips below the immediate 20 day EMA support, it will fall sharply toward the demand zone of $15 in the upcoming sessions.
Kinder Morgan (KMI stock) KMI share closed in red and made a bearish candlestick and signaled a fake breakout. Furthermore, the follow on selling pressure will continue and the immediate support zone of $16 may be retested soon. Moreover, the price action signals that buyers have lost their momentum and started unwinding their long positions because of the weak Q3 numbers. Per the options chain, at the strike price of $17, a massive open interest of 10487 hundred shares on the call side, whereas 8618 hundred shares on the put side shows short buildup activity.
At press time, KMI stock price was $17.01 with an intraday drop of 0.76%, showing neutrality on the charts. Moreover, the trading volume increased by 1.56% to 18.90 Million while the market cap is $37.901 Billion. Furthermore, analysts have maintained a neutral rating with a yearly target price of $20.34, suggesting underperformance in the upcoming sessions.
Kinder Morgan, Inc. engages in providing pipeline transportation of natural gas services. It operates through the following business segments: Natural Gas Pipelines, Products Pipelines, Terminals, and CO2. The Natural Gas Pipelines segment operates major interstate and intrastate natural gas pipelines and storage systems. The Terminals segment includes operation of liquids and bulk terminal facilities that store and handle various commodities. The company was founded by Richard D. Kinder and William V. Morgan in February 1997 and is headquartered in Houston, TX.
Will KMI Retest Demand Zone of $15?
On the daily charts, KMI stock price is close to the 20 day EMA, showing a reversal in the last trading session. Furthermore, the KMI stock price faced rejection from the 50% Fibonacci retracement zone and the 200 day EMA barrier, highlighting the bears’ grip near $17. Furthermore, the short buildup activity gives a strong conviction that sellers are gaining traction and are looking to defeat the bulls.
The RSI curve stayed in the overbought zone and is heading toward neutrality. The MACD showed a bullish crossover and green bars on the histogram suggesting a volatile chart structure.
Summary
Kinder Morgan (KMI stock) price is close to the 20 day EMA which if broken, a sharp reversal can be anticipated toward the demand zone of $15. Furthermore, the chart showcased that sellers looked aggressive and KMI stock faced the 200 day EMA barrier where bulls lost momentum.
Technical Levels
Support Levels: $16.50 and $16.00
Resistance Levels: $17.50 and $18.00
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/10/20/kmi-stock-price-holds-20-day-ema-will-bears-push-kmi-below-17/