It is unheralded precipitous market falls such as this not so disastrous one, which can drive investors and their broker advisors to jump out the proverbial window.

Technical Analysis may not always warn of the approach of such catastrophic developments which can engulf even the most elite of “blue-chip” corporations. It can however help you decide what to do next.

The 5 year weekly candlestick chart above shows that CCL had been in a 3 year price decline since forming a double top just above $15 a share, until a year ago when it formed a double bottom at $8 support, and commenced an upward trend.

The share-price at the time of writing is $8.42, so the gains of the past year have now been largely wiped-out. From a technical perspective, those still holding stock could reasonably delay stop/loss selling to see if the $8 support level holds. Those investors seeking to buy the “dips” would be wise to first seek guidance from their broker.

Categories: Chart Analyses

Tags: Coca-Cola Amatil