The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks; water, enhanced water, and sports drinks; juice, dairy, and plant-based beverages;
Coca-Cola (NYSE: KO) is a slow mover, but it’s a stock considered to be very safe because it hardly gives us any surprises. In the supply and demand technical analysis attached below, we can see a new imbalance created in the daily timeframe that could eventually allow the price to rally way higher into the $55-60 range, currently trading at around $46, reacting to the imbalance. Great long opportunities could be created for intraday stock traders and those trading stock options on Coca-Cola (NYSE: KO).
Coke’s sales slow down as the coronavirus keeps customers from convenience stores, movie theatres and activities. Coca-Cola Co. is seeing its sales squeezed by the coronavirus lockdown, with customers unable to grab a beverage at places like movie theatres, office soda machines or convenience stores as they head out for a day’s activity.
However, new demand imbalances are being created, as posted in the stock trading analysis above. The biggest impact on Coca-Cola’s (NYSE: KO) stock has been a sharp decline in the important away-from-home portion of their business, which includes their eating and drinking channels.
This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.
Trading supply and demand imbalances are ideal for beginners and those with full or half-time jobs. 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 on Coca-Cola stock.
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 and futures. 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) on Coca-Cola if you are in a country where it’s allowed.
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