TAP finds buyers again around 36.98
Molson Coors Brewing Company Class B (TAP) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, TAP ended the month 9.2% higher at 37.52 after edging higher $0.08 (0.21%) today on high volume, underperforming the S&P 500 (0.77%). Today's close at 37.52 marks the highest recorded closing price since June 23rd. Trading $0.78 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TAP as at Jul 31, 2020):
Friday's trading range has been $1.33 (3.54%), that's above the last trading month's daily average range of $1.04. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TAP.
Five candlestick patterns are matching today's price action, the Gravestone Doji and the Northern Doji which are both known as bearish patterns and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Northern Doji showed up on June 16th, TAP lost -2.59% on the following trading day.
After having been unable to move lower than 37.13 in the previous session, the share found buyers again around the same price level today at 36.98.
Though Molson Coors is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Molson Coors. Out of 65 times, TAP closed higher 52.31% 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 three trading days, showing a win rate of 60.00% with an average market move of 0.22%.