KO pops to highest close since December 11, 2018
Coca-Cola Company (KO) Technical Analysis Report for Feb 08, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, KO finished the week 1.64% higher at 49.50 after edging higher $0.08 (0.16%) today, slightly outperforming the Dow Indu. (-0.25%). Today's close at 49.50 marks the highest recorded closing price since December 11, 2018. Trading up to $0.26 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 49.46, the market confirmed its breakout through the previous session high after trading up to $0.04 above it intraday.
Daily Candlestick Chart (KO as at Feb 08, 2019):
Friday's trading range has been $0.39 (0.79%), that's below the last trading month's daily average range of $0.57. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KO.
Prices are trading close to the key technical resistance level at 49.55 (R1). After having been unable to move above 49.46 in the prior session, Coca-Cola ran into sellers again around the same price level today, missing to move higher than 49.50. The last time this happened on Tuesday, KO lost 0.00% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 49.00 where further sell stops might get activated. 2018's high at 50.84 is within reach and we could see further upside momentum should the share manage to break out beyond. Trading close to December's high at 50.51 we might see further upside momentum if potential buy stops at the level get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Coca-Cola. Out of 678 times, KO closed higher 55.75% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.91% with an average market move of 0.57%.