KO closes within prior day's range after lackluster session
Coca-Cola Company (KO) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, KO finished Wednesday at 49.79 gaining $0.13 (0.26%), slightly underperforming the Dow Indu. (0.46%). Today's close at 49.79 marks the highest recorded closing price since November 30, 2018. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (KO as at Feb 13, 2019):
Wednesday's trading range has been $0.38 (0.77%), that's below the last trading month's daily average range of $0.55. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for KO. Prices continued to consolidate within a tight trading range between 49.46 and 49.94 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on February 7th, KO actually gained 0.16% on the following trading day.
Prices are trading close to the key technical support level at 49.47 (S1).
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 49.46 where further sell stops might get activated. 2018's high at 50.84 is within reach and we could see further upside momentum should Coca-Cola 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 three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Coca-Cola. Out of 675 times, KO closed higher 56.30% 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 61.33% with an average market move of 0.61%.