KKR Real Estate Finance Trust is trying hard to break out of what looks a lot like an inverse head and shoulders pattern.
The neckline can be easily outlined as it is a level that previously provided support. We see the concept of polarity at play here. As we like to see on GoNoGo Charts when we are looking at traditional patterns the movement of the GoNoGo Oscillator makes a lot of sense. After moving below zero as price started to struggle in early November, the zero line provided resistance for much of the pattern and indeed the "NoGo" move. What we like to look for in a pattern like this is that during the right side of the formation GoNoGo Oscillator starts to show signs of momentum in the other direction. Encouragingly, this is the case here. Right after price hit its ultimate pattern low (head) GoNoGo Oscillator moved into positive territory on heavy volume. It has been finding support at zero through the right shoulder. On the current fresh "Go" bar, GoNoGo Oscillator has moved again into positive territory. We will look for price to fill the gap from the end of October and attack the October high of $23.40.