Technical analysis update: KO (12th July 2021)The Coca Cola Company lacks a trend at the moment. This is reflected in low ADX value on daily timeframe. However, RSI, MACD and Stochastics are turning bullish. Support currently sits at 53.55 USD while resistance appears at 56.48 USD. We think there is potential for KO to resume its previous bullish trend and move above its resistance. Because of that we would like to update our medium term price target for KO to 56.50 USD.
Disclaimer: This analysis is not intended to encourage buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
COKE
McDonalds +20% Upside Trade?MCD's has consolidated nicely right along its recent all time high set months ago at $231.91 and is doing so off of consecutive higher highs and higher lows on significant time frames.
On the monthly, we also see that McDonalds is putting in a bullish engulfing candle. There are still a few weeks left in the month, but with the price already being in blue sky territory, and very little bearish momentum in sight, there does not appear to be anything in its price chart to hold it back from running all the way to its first fib extension at around $297.88 roughly, based on a retracement from its previous all time high in October 2020, down to the swing low in March 2020.
From the time of writing this that would be a 25% gain approximately.
Stop loss just below $231.91 and $221.29 would be wise (just incase it wicks). Be very cautious with a close below $221.29 as there is plenty of room to fall swiftly if volume/bids fail to come in.
Monster Energy (MNST) Bearish ABCD Monster Energy is an odd company, because when was the last time you saw a Monster Energy commercial? probably not at all or it was a really long time ago, now when i ask the same of its Austrian competitor Red Bull probably more recent depending on your preferred media choice. Now, when I say energy drink what comes to mind? Either the Red Bull can or the distinctive Monster "M". This is what Warren Buffet calls owning a share of the consumers mind.
Coca-Cola (KO), Keurig/ Dr. Pepper/ Snapple (KDP), Pepsi (PEP) have tried to de-throne Monster (MNST) several times with Venom Energy, AMP energy, and Full throttle. Now KO is trying again with their own line of Coke Energy Drinks and I just don't see it doing too well but I could be totally wrong. Monster for the Value investor is a A++ buy. i don't typically give out an A++ buy, because the company usually starts faltering either on the income statement, balance sheet, or the cash flow statement. When I have friends give me company ideas to look at i usually don't make it past the Revenue line on the income statement which is usually my starting point.
The only companies that have received an A are Nike (NKE) and The Home Depot. The Home Depot is the only company that received an A+, until NOW! Monster would Receive an A++ grade but there is a down side, they do not pay a dividend, whereas, HD pays out a 2% dividend. Nevertheless, onward with the fundamental analysis.
When you look at the Financials you will see that MNST has been steadily growing its revenue over the past decade even in the full swing of COVID-19. I guess people need to make sure they were awake during the S*** Show called COVID-19. We are talking about a decade average of 13% increase, and no there are no huge "BOOMS and BUSTS" this is a steady increase floating between 9-13% a year with a steady Gross Profit Margin throughout the entire decade with the Average being 57%!!! Their SGA expenses compared to their Gross Profit is far below normal for any company of its size. This company provides energy drinks across the US and in 2015 they teamed up with KO and started using their distribution network to begin pushing their products outside the US. Their EPS has been steady growing with a few boom and busts in this area but overall a 20% increase.
Those are just a few highlights from the financials.
Now, on to the technical side of things... What you see on the chart is a Bearish ABCD pattern. price overextended a little bit and is now making its way down. Monster is trading too high at the current moment, and yes this is a bearish pattern i am using it as a guide to where to get in at the best current bargain. There are two yellow lines on the chart. One is a 382 retracement of the entire pattern and the other is a 618 retracement of the entire pattern. so, again these yellow lines are potential entry points
the orange line is the DJIA and we can see that MNST is out performing the DJIA! :) overall this is a great company to invest in!
Bullish CokeCoke has not recovered since the march drop but was consolidating for some time and printed higher lows as well as an ascending triangle. There is a very bullish TK recross on the 1h and a TK cross above the cloud on the 4h chart, a KUMO (cloud) breakout on the Daily. unfortunately there is a bearish TK cross on the weekly chart however taking the bullish signals on the lower timeframes it could lead to a TK recross on the weekly chart which is the most bullish signal using the ichimoku cloud
Great Potential Swing Trade for Coca-Cola (KO)Coca Cola is well below the 200ma and has now bounced off its support. The stock is also in a bullish channel and with earning coming up and some positive news, it looks like it could be great swing trade for coming days/weeks and for a very cheap price in options!
Coca Cola is a safe bet, as we can all pretty much agree, the company isn't going anywhere long term.
They recently have made lots of adjustments to their business plans moving forward to adapt to the changing market and become more efficient as a company which can be found here: www.coca-colacompany.com
With a rise in the coffee market worldwide, Coca-Cola has recently launched their own product which can be found here: www.foxbusiness.com
Lastly, hard seltzers were the quickest growing products in the alcohol market last year with drinks such as Trulys gaining popularity. Much like the coffee market, Coca-Cola is launching their first ever alcoholic beverage and jumping on the seltzers band wagon moving forward, that info can be found here: www.usatoday.com
KO Coca-Cola - Buyzone Bottom of Regression on downgradeKO Coca-Cola - Buyzone Bottom of Regression on downgrade
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This content is for informational and educational purposes only. This is not in any way, shape or form financial or trading advice.
Good luck, happy trading and stay chill,
2degreez
BULLISH RALLY IN COKE - WEEKLYHi Traders,
Looking for a bullish impulse in Coke Stock which should happen this year 2021.
I do not trade stocks, this would be an analysis for buying actual stocks and gold them in the long term.
This is not financial advise, trade and invest with care.
Carlos
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Hola Traders,
Buscando un rally alcista nuevo en las acciones de Coke o Cocacola que debería desarrollarse este 2021.
No opero acciones, este análisis tiene el fin de comprar acciones y trabajar un portfolio a largo plazo.
Esto no es asesoría financiera, tradea e invierte con cuidado.
Carlos
Potential short term downside. Personally I plan to hedge out the difference since I had a relatively reasonable entry. Of course I keep a rather wide stop (given the relatively small size of my position) a bit bellow Time Weighted Average Price (TWAP; lowest plain line).
That would be the worst case scenario, my entry and long position is based on qualitative (bottom up) analysis. The stop is still, in my opinion, necessary as if the the price breaches far below that my position wouldn't make any sense on any time frame below 3 years.
Please note that the arrow is just there to illustrate the potential downside I plan to hedge against. It's not a price prediction, I can't see the future.
My short term goal at any given point is always to limit the risk and protect profits. The money will just show up if I'm consistent.
Our Stock of the Day / Coca-Cola Two days ago, we posted a long setup on KO. You can check it on related ideas. Now we have a short setup pending on KO as well.
Which is the logic of this?
a) Currently, we are in a relevant area; the price can be seen as long or short, depending on how it will evolve in the short term. The idea we have is using a system that can provide us with quick adaptation in any direction the price can takes
b) Now, the price is below the resistance zone and is making a pullback on the broken ascending trendline. These two items provide us with a solid setup in case the price breaks below "B" of the corrective pattern (Entry Level). IF that happens, we will open short positions, and we will move our stop to break even on the yellow line. The risk-reward Ratio we have on this setup is 2.1
c) The risk we will take is 1% of our Capital
d) IF the price keeps going up, we will cancel our short setup, and we will open long positions on the green line (check the previous idea)
e) IF the price executes our short setup, we will cancel our long setup.
Remember: Trade safe, protect your capital, always understand what you are doing!
Our Stock of the Day / Coca-Cola Explanation of the chart:
a) The price has broken a clear range
b) Currently, the price is moving sideways on the edge of it
c) That sideways movement can be identified as a flag pattern
d) From a Technical Perspective, we expect a bullish movement with the extension of the broken range at least (On that level, we have a resistance zone). There, we will move our stop to break-even
e) Our final Risk Reward Ration on this trade is 2.06 / We have set our pending orders in the same way you can see on the chart. We will cancel the setup if the price makes new local lows.
Trade Safe, protect your capital, and always understand the investments you are making.
KO Likely to break through $50 and retrace back upKO seems to be attempting it's 4th break above resistance at $50, post-crash. So long as the overall market holds, I believe it breaking above $50 is highly likely this month. If KO does break above $50 while abiding the ascending channel in the chart, I believe KO could reach $55-$60 with a momentum swing within the next 6 weeks. I picked up September 18th $50 strike calls for ~$0.50, so I'm expecting them 10x-20x if resistance it broken through within the ascending channel.
$KO daily-Chart has not changed since I drew a couple weeks ago and continues to perform as expected
-Closed right at the bottom a huge volume shelf
-Break of 43.20ish would bring a measure down of about 5 points to the $38 price level
**RSI is still declining but is still below 50 and on watch if it continues dramatic move to oversold territory.
**Still strong volume shelves at 45ish and 44sh