SLOPolarBear

10% Pullback on KO

Long
NYSE:KO   COCA-COLA CO
Nice bottom formation. Added a round lot to my dividend investments account. Stocks like this are going to look really good in a few months, I plan to hold indefinitely.
Trade active: BOUGHT 100 shares @ 48.50
Comment: Hammer is getting painted on the daily. Might see this one pop up tomorrow. I was tempted to back up the truck, but there's still a possible draw-down even tomorrow or the next day for lower prices.
Comment: Anyone paying attention the broad market indexes can see that we're scaling back. KO is doing its own thing (for now). I'm not anticipating a wild pullback on KO, but all ships move with the tide, so tempering expectations, I revise the above to say that price action could potentially move lower to the $45-47 range over the next week. I'm holding fast to my shares since I am DCA'd @ $34.
Comment: END OF THREAD - SEE HERE FOR LATEST:
**Disclaimer, this is only for entertainment and education purposes and doesn't serve by any means as a buy or sell recommendation.
Personally I hold both long term long positions and occasionally short term short position, for disclosure purpose.**

Comments

Got in @ 48.52, going to be interesting to see how the next few days play out.
+1 Reply
slimebaby dspooner5
@dspooner5, What price do you think its heading to?
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dspooner5 slimebaby
@slimebaby, Not sure to be honest, I'm hoping it will swing up to the $50-$51 range. I'm working on getting better at trade management. Establishing a take-profit point is one of the things I need to work on clearly lol
+1 Reply
SLOPolarBear dspooner5
@dspooner5, $50-51 is a solid target short term. I've been trading KO for nearly a decade and I've found the 2-day chart is the best when it comes to examining long term trends & support/resistance. While lower time frames (like the charts I've selected above) show price action fighting resistance, 2-day charts show us at a major long-term support. I would not be surprised to see a quick rise to $51 and a quick pullback to $49. But this would be the beginning of an ascending triangle until price breaks above. It's not a fast mover, which makes it an ideal stock to trade for beginning swing traders. Personally, I like stocks like this for dividend reinvestment retirement accounts that sit on the backburner for a very long period of time. When markets are at nose bleed valuations, these kinds of trades are rather safe. Energy (oil) is another sector worth consideration. Cheers.
Reply
slimebaby SLOPolarBear
@SLOPolarBear, Thank you for such a detailed response. Very insightful. I've been looking at LEAPS for $ET but I'm wary of hopping into the energy sector. Why do you recommend it?
+1 Reply
SLOPolarBear slimebaby
@slimebaby, Energy has been hammered down recently. There are plenty of natural gas/oil companies that have been around for nearly a century or longer, they consistently produce solid cashflow, and frankly, they're not going anywhere. They have huge barriers for entry. In recent years, a number of these companies (like NGL -- not an endorsement to BUY, just an example) have been beaten down due to escalating debt. But from an accounting perspective, it's really not that bad because they're taking ownership of that debt with no-interest loans. Are these the sort of companies that I would day trade or open large positions of my portfolio with? No! But you read articles every day talking about how overpriced stocks are, and while that may be true for much of tech sector, it's definitely not the case with consumer staples and energy. All companies go through long term rotations. If you pull up any of these companies and examine their stock prices going back 10 years, you can see massive cyclical/seasonal swings. Oil demand is going up (all you need to do is chart the price of crude).
Reply
slimebaby SLOPolarBear
@SLOPolarBear, Thank you again for the detailed reply. Very informative. I look forward to seeing more posts by you!
Reply
SLOPolarBear slimebaby
@slimebaby, Here's a link to a guy I follow who regularly posts updates regarding which sectors are doing what (you can see energy is at the bottom):
Reply
dspooner5 SLOPolarBear
@SLOPolarBear, Thanks this looks great. Was a bit of a pullback today, but I think it still is looking good going into next week. Do you think there are any realistic chances of this swinging back up to the $53 - $54 range is was at towards the end of December?
+1 Reply
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