KO trending up LONGKO as a long standing Buffet holding- is a slow mover with a decent dividend. For stock and
especially options traders like myself, it is now well positioned for a long trade.
KO's recent pivot highs were early to mid May with the highest trading volume at $64 according
to the interval volume profile.
KO descended mid-May into June 1st and then had a Fib. retracement and
reversal. On the 2H chart, KO price has risen ifrom the bottom of the high volume area of the
overall while the RSI / MTF ( Chris Moody) shows relative strengths in the range of 50-70
with the one hour TF RSI higher than the 4H TF RSI as a sign of bullish momentum.
The triple indicator shows money flow and price momentum both with bullish signals.
The Lorentzian AI indicator with machine learning printed a buy signal on July 12th
The have added to the chart two VWAP sets of bands anchored about May 1st and June 1st.
Price is in a VWAP band breakout moving from between the second negative deviation lines in
red and the first negative deviation lines in blue to the current position between the first
negative deviation blue lines and the black mean aVWAP lines I see this as a classical
opportunity to buy low and sell high.
Trade specifics are a stop loss of 60.15 at the first negative deviation bands while the targets
are one third of the position at 61.6 ( mean aVWAPs) another third at 63.0 ( first deviation band
above aVWAPs) and the final third at 64.4 ( the second upper deviation band ) I will raise the
stop loss to break even upon price reaching 61 and in doing so, the trade becomes risk-free.
I will devote 3 % of the account to this trade and may opt to take a call options trade as well
striking $163 with a DTE of 9-10. I will select an entry buy zooming into onto the 5-15 minute
time frame. Profits from a low risk trade like this will be re-deployed into others a bit riskier as
a means of stratifying and rebalancing risk and its managment.
