TAP finds buyers at key support level
Molson Coors Brewing Company Class B (TAP) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
TAP ended Wednesday at 59.68 gaining $0.49 (0.83%) on high volume, outperforming the S&P 500 (0.3%). Trading up to $0.69 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, TAP actually lost -9.44% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (TAP as at Feb 13, 2019):
Wednesday's trading range has been $1.34 (2.27%), that's slightly above the last trading month's daily average range of $1.29. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TAP.
After trading down to 58.42 earlier during the day, the share bounced off the key technical support level at 58.62 (S1). The failure to close below the support might increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 60.29 (R1).
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 64.13.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Molson Coors. Out of 165 times, TAP closed higher 50.30% 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 66.67% with an average market move of 1.54%.