KO pushes through Monday's high
Coca-Cola Company (KO) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, KO ended the month -4.28% lower at 44.68 after gaining $0.32 (0.72%) today on high volume, slightly underperforming the Dow Indu. (0.85%). Closing above Monday's high at 44.57, Coca-Cola confirmed its breakout through the previous session high after trading up to $0.26 above it intraday.
Daily Candlestick Chart (KO as at Jun 30, 2020):
Tuesday's trading range has been $0.79 (1.79%), that's below the last trading month's daily average range of $1.11. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for KO.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on June 18th, KO actually lost -2.06% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 45.01 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 43.51 where further sell stops could get triggered. Further selling might move prices lower should the market test May's close-by low at 43.20.
Among the eight 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 675 times, KO closed higher 55.56% 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 61.04% with an average market move of 0.46%.