TAP closes below its opening price unable to hold early session gains
Molson Coors Brewing Company Class B (TAP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
TAP finished Wednesday at 34.56 gaining $0.27 (0.79%), significantly outperforming the S&P 500 (-0.46%). Trading $0.56 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 September 9th, TAP lost -5.12% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TAP as at Sep 16, 2020):
Wednesday's trading range has been $0.75 (2.16%), that's slightly below the last trading month's daily average range of $0.91. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TAP.
Prices are trading close to the key technical support level at 33.92 (S1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 36.96.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 33.92 where further sell stops might get triggered. With prices trading close to this year's low at 33.18, downside momentum could accelerate should Molson Coors break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Molson Coors. Out of 73 times, TAP closed higher 65.75% 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 67.12% with an average market move of 0.81%.