KO closes within prior day's range
Coca-Cola Company (KO) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, KO ended the month 5.73% higher at 47.24 after losing $0.45 (-0.94%) today, significantly underperforming the Dow Indu. (0.44%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (KO as at Jul 31, 2020):
Friday's trading range has been $1.04 (2.19%), that's slightly above the last trading month's daily average range of $0.91. Weekly volatility is also higher, being slightly above 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 Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
After trading down to 46.73 earlier during the day, the share bounced off the key technical support level at 46.91 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on July 21st, KO gained 2.71% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Coca-Cola. Out of 28 times, KO closed higher 53.57% 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 82.14% with an average market move of 1.18%.