Short Candidate: KO - Coca Cola Co.

InvestedCentral

Junior member
20 0
KO is a $120.7 billion Dow Component and consumer goods company that manufactures, distributes, and markets nonalcoholic beverage concentrates and syrups worldwide. KO has now reached overbought territory on stochastics at a time when it's struggling to negotiate both 50 day SMA and gap resistance levels. The reversal on Friday after an intraday attempt at a breakout occurred on heavier than normal volume. With the MACD climbing back near its centerline, the highest probability is that KO will turn back lower and reverse the recent uptrend. While a breakout is always a possibility, the best reward to risk play currently is on the short side. Why? Because if KO makes a breakout, the risks are minimal as shorts can quickly cover. However, if this gap and 50 day SMA resistance prove to hold, the downside could be to test recent lows just below $50.00.

 

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