COTY enters Golden Cross for the first time since September 10th
Coty Inc. Class A (COTY) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
COTY finished Wednesday at 11.58 losing $0.02 (-0.17%), underperforming the S&P 500 (0.63%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (COTY as at Dec 04, 2019):
Wednesday's trading range has been $0.30 (2.6%), that's slightly below the last trading month's daily average range of $0.40. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for COTY.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on October 25th, COTY gained 0.26% on the following trading day.
Unable to break through the key technical resistance level at 11.82 (R1), the stock closed below it after spiking up to 11.84 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish. With its 50-day moving average crossing above its 200-day moving average, the market has entered a so-called "Golden Cross" for the first time since September 10th. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon.
Buying might accelerate should prices move above the nearby swing high at 11.86 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 11.30 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Its common bearish interpretation has been confirmed for Coty. Out of 329 times, COTY closed lower 53.50% of the time on the next trading day after the market condition occurred.