Looking at the technical picture of the Coty Inc stock (NYSE: COTY) on our daily chart, we can see that the share price continues to grind higher, while trading above a medium-term tentative upside support line, drawn from the low of November 2nd. The stock is currently sitting slightly below one of its key resistance barriers, at 8.36, which is the highest point of February. Although there is a good chance to see a further move north, we would still prefer to wait for a confirmation break above that 8.36 barrier first. Hence our somewhat positive approach for now.
A strong push above the 8.36 hurdle will confirm a forthcoming higher high, potentially opening the way towards higher areas. The Next potential target might be at 9.44, marked by the highest point of March 2020, which may temporarily halt the upmove. COTY might even retrace back down a bit. That said, as long as the price stays somewhere above the 8.36 hurdle, or the aforementioned upside line, we will stay positive with the near-term outlook. Another push higher could bring the share price above the previously mentioned 9.44 obstacle, potentially aiming for the 10.07 level, marked by the lowest point of January 2020 and the high of February 27th.
The RSI and the MACD are currently tilted to the upside. The RSI continues to float above 50. The MACD still remains above zero and its trigger line. The two indicators are showing rising price momentum, which supports our main scenario, for now.
Alternatively, if the share price breaks the aforementioned upside line and then drifts below the 6.94 hurdle, marked by the low of February 18th, that could spook new buyers from entering for a while. COTY might then drift to the 6.21 obstacle, which could provide temporary support, as it marks the lowest point of February. However, if new buyers are still nowhere to be found, the stock might drift further south, possibly aiming for the 5.56 level. That level marks the high of November 18th.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.