#KO #SP500 NYSE:KO
Coca-Cola looking particularly weak unable to reach a 1:1 Fibonacci extension within its bear market rally.
Whether the corrective rally continues or not, I see low 40s coming in the short term.
Holding 42/40 put spreads expiring this week.
I go by the book. Questions or concerns go right ahead please.
0QZK trade ideas
KO Forms Descending Triangle For Short-Horizon YieldKO finished forming a descending triangle moving towards a critical support of 44.26 based on a previous low. RSI is in decline and DM- overtook DM+, all indicating stronger sell pressure.If 44.26 support broken likely to descend into the region of 41 - 38.
However, fundamentally KO is trading undervalue right now despite recent macro factors. Earnings up 44% boosts KO intrinsic value upwards of 55. Would definitely recommend buying KO at next local low for long-term hold.
Conservative take profit set at 41.
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KO strong earnings (+44.68%) bumping intrinsic valueKO declared $0.64 on $0.44 analyst predictions. +44.57% bumps intrinsic value to dramatically of KO particularly in the turbulent market. Good regularity in local peaks and troughs. ADX overall neutral, RSI about to come down sharply so likely short-horizon (1-2 day) short potential. Presumed local minima to be at 44 on 02/05 and come back up to local max at 49 on 06/05.
Boundaries
If 49 resistance broken price targetted at 59.
If 44 support broken price could come down as far as 36.
Risk/Reward
Total gain considering both best case / worst case is $12.26 gain over $10.40 loss.
Total gain considering most nominal circumstance is likely to be $12.26 gain for $2.74 risk.
KO - The start of a bullish move?* Remember to support with LIKE and FOLLOW me for more analysis *
KO respected the previous top as a support (yellow line), and yesterday did a nice bullish sign. If it goes up to U$ 49.73 (blue line) and breakout, will trigger a pivot that could take KO to U$ 59 in an optimistic scenario.
Now it is in a very delicate moment. Today’s candle is clearly bearish but has low volume. If we look at the hourly chart, we can have more clues:
KO did a double bottom pattern (maybe an Adam & Eve?), and now is doing a nice pullback (after all, Adam & Eve patterns has 67% pullback rate).
Now there’s 2 supports zones. The first one is the 21 ema and the black line (top of the peak between the bottoms). The second is the bottom of the pattern. If the price breakdown that zones, it could sink down to U$ 41.80.
Watch out for KO, and be safe.
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Most stocks are still sitting on the trend line. Not $KOWhat is Coke $KO trying to say? It's one of the first blue-chippers to take a stab below the trend line looking to take out the clean lows from the last month. If turns out that's just a spring for higher we could see upwards of.... ahh, never mind. Demand destruction. For every one 1%er there's a million people that are screwed. Odds are retest of the lows. At a minimum. Can't rule out a bear market that lasts a year or two.
Coca-Cola Co (KO) - Opportunity to SELLHey everyone, here's the analysis on KO. Hit the LIKE button, follow us & leave a comment on stock ideas you want to see next!
Summary:
Current price could drop from our R1 zone to our S1 zone, presenting us with a good opportunity to sell.
Action:
Sell Limit: 45.34
Stop Loss: 52.00
Take Profit: 35.00
Analysis:
Monthly trend line was broken and re-tested with a strong rejection off our R2 zone, as captured by the recent spike. R1 zone is holding out nicely as a resistance and current price could drop to our S1 zone.
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KO Reverse Bullish (200 EMA, confirmation, and earnings setup)Confirmation with 3 bounce on support line with 200 EMA convergence with earnings coming up this week. Potential for gain 1:27, 1:6, or 1:10 gain with minimal downside being close to support line.
Keep in mind I am new to this but, following someone else's thesis idea that I wanted to work through for myself.