KO as a long standing Buffet holding- is a slow mover with a decent dividend. For stock and
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 4H chart, KO price is now at the bottom of the high volume area of the overall
while the RSI / MTF ( Chris Moody) shows relative strengths in the range of 25.
I see this as a classical opportunity to buy low and sell high. Trade specifics are a stop loss
of 59.30 and targets based on anchored VWAP lines of 61 (25% off) 62.5 (50%) and
63.75 (25%). As a low-risk trade for the stop loss compared with the potential profit, I will
devote 5 % of the account to this trade. Once price hits $60.25, I will raise the stop loss to
the break-even price of the entry and the trade will become stress and risk free. I will
select an entry buy focusing down 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
risk and its managment.
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 4H chart, KO price is now at the bottom of the high volume area of the overall
while the RSI / MTF ( Chris Moody) shows relative strengths in the range of 25.
I see this as a classical opportunity to buy low and sell high. Trade specifics are a stop loss
of 59.30 and targets based on anchored VWAP lines of 61 (25% off) 62.5 (50%) and
63.75 (25%). As a low-risk trade for the stop loss compared with the potential profit, I will
devote 5 % of the account to this trade. Once price hits $60.25, I will raise the stop loss to
the break-even price of the entry and the trade will become stress and risk free. I will
select an entry buy focusing down 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
risk and its managment.
Trade active
Price on a low volatility rise. Stop loss raised to break-even. Drank some of thecompany's products today. Trade is risk and stress free.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.