TAP drops to lowest close since February 12, 2014
Molson Coors Brewing Company Class B (TAP) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
TAP ended the week -5.21% lower at 54.00 after losing $1.11 (-2.01%) today, strongly underperforming the S&P 500 (-0.16%). Today's close at 54.00 marks the lowest recorded closing price since February 12, 2014. Closing below Thursday's low at 54.57, Molson Coors confirmed its breakout through the prior session low after trading up to $0.76 below it intraday.
Daily Candlestick Chart (TAP as at Jun 14, 2019):
Friday's trading range has been $1.58 (2.87%), that's slightly above the last trading month's daily average range of $1.35. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TAP.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on June 7th, TAP lost -3.91% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 53.81 earlier during the day, the market bounced off the key technical support level at 53.84 (S1). The failure to close below the support could increase that levels significance as support going forward. The share ran into sellers again today around 55.39 for the third trading day in a row after having found sellers at 55.28 in the previous session and at 55.46 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 53.41, downside momentum might speed up should the stock break out to new lows for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Molson Coors. Out of 126 times, TAP closed higher 59.52% 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 53.17% with an average market move of 0.33%.