TAP closes lower for the 3rd day in a row


Molson Coors Brewing Company Class B (TAP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team

Highlights

TAP breaks below key technical support level
TAP falls to lowest close since January 10th
TAP closes below its opening price unable to hold early session gains
TAP closes lower for the 3rd day in a row
TAP runs into sellers again around 55.79

Overview

Moving lower for the 3rd day in a row, TAP finished the week -4.38% lower at 55.25 after losing $0.11 (-0.2%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 55.25 marks the lowest recorded closing price since January 10th. Trading $0.31 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, TAP lost -4.39% 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 14, 2020):

Daily technical analysis candlestick chart for Molson Coors Brewing Company Class B (TAP) as at Feb 14, 2020

Friday's trading range has been $0.91 (1.64%), that's slightly below the last trading month's daily average range of $1.15. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for TAP.

Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.

Prices broke below the key technical support level at 55.27 (now R1), which is likely to act as resistance going forward. After having been unable to move above 55.73 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 55.79.

Molson Coors shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.

Selling could accelerate should prices move below the nearby swing low at 54.47 where further sell stops might get triggered.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Molson Coors. Out of 44 times, TAP closed higher 56.82% 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 54.55% with an average market move of 1.34%.


Market Conditions for TAP as at Feb 14, 2020

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