Is Coke going flat? Might be a good time to sell...NYSE:KO
Analysis is based on simplified Smart Money Trading Concepts.
Coke has been printing Weekly bearish order flow since August of 2022.
Recent price action( past ~134 days) on the Weekly time frame has had a Bullish pullback with what I anticipate a continuation or return to Bearish order flow between the 70.5% - 89% fibo zones. This would be supply overtaking demand to continue the weekly Bearish Structure also known as order flow.
Trade Idea Point of Invalidation: Any break AND close above $64.99
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Reward to Risk ratios could vary between 3:1 up to greater than 5:1 depending on the instrument you are trading and the level that you enter in at.
The round trip time from entry to exit is between 6-11 months.
If you are Shorting the Underlying stock :
4 positions between the 70.5% pullback($61.03) and the 89% pullback($63.51) would be ideal.
Exits:
1st = $51.55
2nd = $47.92
**Split your positions between the 2 suggested exits**
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If you are trading stock options:
NO less than a 6 month expiration!
Suggestion:
16 Aug 2024 -- Buy $57.50 Puts (out of the money)
or
17 Jan 2025 -- Buy $57.50 Puts (out of the money)
Exits:
Underlying stock price
1st = $51.55
2nd = $47.92
If you need an options calculator, I suggest using: www.optionsprofitcalculator.com
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