KO Long Position
Hi Traders
Coca-Cola Company (KO) is in an uptrend since October '23, reaching higher highs and higher lows. It recently broke its previous resistance level, which was between $63.5 and $65. When the price confirms this price range as a new support level - by not dropping below it - it also means that the uptrend is still valid and that taking a long position is very reasonable (since this would mean that we're in the lower part of the new price range).
The bullishness of this stock is also indicated by its revenues and earnings, since both metrics have had a positive surprise value on the last eight measurements. This means that the company is doing very good and, thus ,the technical analysis gets reinforced by the fundamental analysis.
Furthermore, KO's RSI indicates that the stock is a bit oversold right now and that this could be a good moment to take in a long position.
I would suggest to enter this trade between the pre-market price of $65.2 or the lower bound of the support level, which amounts $63.5.
I would set a target at the new resistance level of $73.
I would put a stop-loss at $61.7.
This trade has a risk/reward ratio of 2.5, if you enter at the price level of 65.2 and a risk/reward ratio of 4.8 if you enter at the price level of $63.5.
Coca-Cola Company (KO) is in an uptrend since October '23, reaching higher highs and higher lows. It recently broke its previous resistance level, which was between $63.5 and $65. When the price confirms this price range as a new support level - by not dropping below it - it also means that the uptrend is still valid and that taking a long position is very reasonable (since this would mean that we're in the lower part of the new price range).
The bullishness of this stock is also indicated by its revenues and earnings, since both metrics have had a positive surprise value on the last eight measurements. This means that the company is doing very good and, thus ,the technical analysis gets reinforced by the fundamental analysis.
Furthermore, KO's RSI indicates that the stock is a bit oversold right now and that this could be a good moment to take in a long position.
I would suggest to enter this trade between the pre-market price of $65.2 or the lower bound of the support level, which amounts $63.5.
I would set a target at the new resistance level of $73.
I would put a stop-loss at $61.7.
This trade has a risk/reward ratio of 2.5, if you enter at the price level of 65.2 and a risk/reward ratio of 4.8 if you enter at the price level of $63.5.
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