EXAMPLE STOCK: J-JOHNSON, Stronger Than Rest Market (4-Hour Timeframe):
EXAMPLE STOCK: BERKSHIRE, Weaker Than Rest Market (4-Hour Timeframe):
As we can examine now when looking at my chart is that KO is printing a clear picture below the important 500-EMA in black where we have strong stocks which are above this this show the current weakness of KO and also the fact that it is consolidating way below the all-time-high where we have other stocks which are near at this level or already formed new highs, this is another factor counting into the environment which is currently developing in the stock here. In comparison, this stock has a similarity to BERKSHIRE which is also in a state with more potential to the downside upcoming. Now, as you can see in my chart KO is forming a here marked in blue in which it is consolidating, as it is approaching the lower boundary another time now we can expect a bounce from here higher to the upper boundary which will complete the wave count it is currently forming and from there form a leg to the downside which is more possible at the moment than the immediate continuation above the upper boundary when the stock has done this like you can see it marked in my chart we need to see and elevate how the stock develops further.
Just on the technical side of things KO is a clear loser of the current corona-crisis in comparison to the rest-market and in comparison to the leading S&P 500 , this can spring up from a decrease in demand to drink and consume unhealthy consumer goods which have a lot of calories and sugar and can cause serious health problems, this theory can be evidenced by the fact that more and more people these days, especially in the corona health crisis, want to live a healthy and sustainable long life, this approach can fundamentally underline the picture the stock is currently showing. We will see how this is developing the next times so far and if there is more downside to expect as you can see in my chart KO needs to hold the highly important 76.8 % Fibonacci-support for solid support when falling below that level there is a high probability given that pressure to the downside increases further. It will be interesting to see how this is playing out further and especially if KO can back up when the major other market goes up or if it fails and the sign increasing more, as this is now the time where it shows up who is profiting from the corona-crisis further where many companies from the digitalization industry have better cards at the moment.
In this manner, thank you for watching, support for more market insight, and all the best!
Even the smallest shift in perspective can bring about the greatest fortune.
Information provided is only educational and should not be used to take action in the market.