Post by Admin on Mar 29, 2015 10:04:12 GMT -5
( click to enlarge)This is the Coca Cola Co. ( KO) trade that was taken on March 12th. I got stopped out of this trade on March 25th and here is how it played out:
A: There was exhaustion volume coming into the support area on March 11th at which point KO became near term oversold.
B: Notice the increase in volume in the days leading up to March 11th. This is usually indicative of exhaustion especially when the sock has been going down for 6 days straight and was heading into support. These conditions placed KO on my watch list. My intention was to confirm the exhaustion and get in the trade looking for a strong reaction over the next couple of sessions.
C: I entered the trade on March 12th when the volume picked up and turned bullish near term.
D: There was always a line of selling near the 41.05 level which formed resistance to any further upward move and the buyers just never seemed to be enough to absorb all the selling that was coming in. This resulted in a push lower when the buyers retreated.
Right now KO is seeing some accumulation in the stock at this level and i have seen some big Options trades made on the May and July Calls but I would have to see it get over the 41.05 level comfortably , on good volume before I consider a re-entry.