Market falls you can’t avoid – Chart Review of Coca-Cola Amatil Aust (CCL)

CCL July 17 Wk

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:

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: