DTT Buzz
Exclusive Market Analysis, Alerts and Commentary from the DaytradeTeam trading staff
Monday, May 12, 2008
The Coca-Cola Company (NYSE:KO) Double Top Reversal
After rallying over the last 3 years The Coca-Cola Company (NYSE:KO) looks to be setting up to reverse course and give back some of its gains. Why have I turned bearish on KO?
KO recently broke its 1 year uptrend and created a double top reversal. After forming this double top reversal, KO broke double top support @ 57 late last week on heavy volume. As well as forming this geometric pattern, there is a bearish cross in the 26, 50, 101 exponential moving averages.
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Keith Greff Jr. says...
Anonymous,
KO is a counter cyclical stock; when the economy slows KO's stock rises. Investors understand that when the economy slows people don't stop drinking Coke and Pepsi, which is why they have done so well during the last 6-8 months. Now that the downturn in the SP500 is basically over, and the market is pushing to the upside, the run in KO and PEP is basically over. Why do you want to fight the market? You go long and we'll go short over the next few weeks and we'll see who comes out on top. Are you up for the challlange?
1:50 PM
Syndicate Site
You are insane, KO has profits that have proven it should be where it is headed in its stock price. 19% rise in profits last quarter alone! 11:20 AM