In this short video analysis, we will go over Coca-Cola American stock forecast and show you how to trade stocks using a supply and demand trading strategy.
Coca-Cola stock has been in a clear long-term uptrend for many months, creating new demand imbalances and respecting them. No matter which stock trading strategy you use, the bias on Coca-Cola stock is bullish unless you are doing intraday or scalping, where shorts would also be allowed. As a long-term investor, going short or selling short Coca-Cola stock within such a clear uptrend is suicidal.
As a beginner in trading stocks, we recommend avoiding lagging indicators. Looking at price action alone without any interference will help you understand how the stock market works, and it will help you learn how to trade stocks easier. How to invest in stocks as a beginner? Locate strong bullish impulses that are printing highs higher than previous highs. The strength of the impulse is key to understanding where potential new imbalances are created.
The technical video analysis attached shows how Coca-Cola American stock has been rallying for months, creating new demand levels and retracing to them. The long-term bias is bullish, with bullish impulses stronger than market corrections. Demand levels at $37, $41 and $41 have held way in such a bullish market.
The Coca-Cola Company, a beverage company, manufactures and distributes various nonalcoholic beverages worldwide. The company provides sparkling soft drinks; water, enhanced water, and sports drinks; juice, dairy, and plant-based beverages; teas and coffees; and energy drinks. It also offers concentrates, syrups, beverage bases, source waters, powders/minerals, and fountain syrups to fountain retailers, such as restaurants and convenience stores.
Trading supply and demand imbalances is ideal for beginners and those with a full or half-time job; you won’t need to stay in front of the computer all day long trying to move price action with your mind.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why is it that you see positive earnings, and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.
Unless you are doing very short-term trading and scalping, you should not worry about fundamentals or earnings announcements.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
There are several ways of buying stocks. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a CFD (contracts for difference) if you are in a country where it’s allowed.
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