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!
