COTY unable to break through key resistance level
Coty Inc. Class A (COTY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 7th day in a row, COTY finished the week -5.15% lower at 11.41 after losing $0.13 (-1.13%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (COTY as at Feb 14, 2020):
Friday's trading range has been $0.21 (1.84%), that's below the last trading month's daily average range of $0.38. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for COTY.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on Tuesday, COTY lost -1.17% on the following trading day.
After trading as low as 11.27 during the day, the market found support at the 200-day moving average at 11.31. Unable to break through the key technical resistance level at 11.48 (R1), the stock closed below it after spiking up to 11.48 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
Coty shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "7 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for Coty. Out of 7 times, COTY closed lower 71.43% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after seven trading days, showing a win rate of 57.14% with an average market move of -0.42%.