COTY closes higher for the 3rd day in a row
Coty Inc. Class A (COTY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, COTY ended the week 13.98% higher at 3.75 after gaining $0.42 (12.61%) today on high volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday.
Daily Candlestick Chart (COTY as at May 22, 2020):
Friday's trading range has been $0.42 (12.03%), that's slightly above the last trading month's daily average range of $0.42. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for COTY.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on May 4th, COTY actually lost -1.88% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 3.02, downside momentum could accelerate should the market break out to new lows for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Coty. Out of 335 times, COTY closed lower 50.75% 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 10 trading days, showing a win rate of 54.93% with an average market move of -0.35%.