KO pops to highest close since February 13th
Coca-Cola Company (KO) Technical Analysis Report for Apr 18, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, KO finished Thursday at 47.48 gaining $0.20 (0.42%), performing in line with the Dow Indu. (0.42%) ahead of tomorrow's Good Friday market holiday. Today's close at 47.48 marks the highest recorded closing price since February 13th. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (KO as at Apr 18, 2019):
Thursday's trading range has been $0.31 (0.65%), that's far below the last trading month's daily average range of $0.43. 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 KO.
Prices are trading close to the key technical resistance level at 47.60 (R1). After having been unable to move above 47.55 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 47.58. The last time this happened on April 8th, KO actually gained 0.26% on the following trading day.
Crossing above the upper Bollinger Band for the first time since March 26th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 46.65 or signal the beginning of a strong momentum breakout leading to even higher prices.
Though Coca-Cola is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Coca-Cola. Out of 601 times, KO closed higher 53.74% 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 56.57% with an average market move of 0.45%.