COTY drops to lowest close since May 29th
Coty Inc. Class A (COTY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, COTY ended the month -17.0% lower at 3.71 after losing $0.11 (-2.88%) today, notably underperforming the S&P 500 (0.77%). Today's close at 3.71 marks the lowest recorded closing price since May 29th. Closing below Thursday's low at 3.76, Coty confirmed its breakout through the prior session low after trading up to $0.09 below it intraday.
Daily Candlestick Chart (COTY as at Jul 31, 2020):
Friday's trading range has been $0.18 (4.74%), that's slightly below the last trading month's daily average range of $0.19. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for COTY.
Prices are trading close to the key technical support level at 3.57 (S1).
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 4.13.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Its common bearish interpretation has been confirmed for Coty. Out of 337 times, COTY closed lower 52.23% 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 54.30% with an average market move of -1.13%.