A decisão de taxas do FOMC promete movimentar o mercado
Nesta quarta-feira (20), o Comitê Federal de Mercado Aberto – FOMC, fará a sua reunião de política monetária, às 15:00, horário de Brasília.
COCA-COLA stock: an interesting choice
2020-01-14 • Atualizado
Warren Buffet approves
On a weekly chart below, you see the Coca-Cola stock price performance. Although it doesn’t look exactly stable, the long-term picture it gives is clearly an uptrend. Especially in the last year, as growth became more aggressive than before. We can see that the Moving Averages lined up in ascending order, with the price being much above and showing yet no sign of a wavy pattern it used to have before. Additionally, Warren Buffet’s Berkshire Hathaway has a big portion of Coca-Cola shares in possession since the 1980s. It may be a good reassurance that this stock is likely to perform well in the long-term (although Mr. Buffet commented that the performance in the last decade is not as good as before). Therefore, we have the fundamentals that this stock is a buy, from a long-term perspective. What about shorter horizons?
Prepare to dive
On the same weekly chart, we can see that the current price of $56 per share rises slightly above the previous high. With that, it makes a clear bearish divergence with the Awesome Oscillator. It makes sense both graphically and intuitively: the price has been high above the Moving Averages for too long – every time that happened, it went down to the 200-week MA to bounce back up.
The same reading is provided by the daily chart below – a bearish divergence foreshadowing the coming drop. So the question here is likely to be not “if” but “down to where”? Observing the previous wavy drops of the Coca-Cola stock price, we can roughly distinguish two types of such scenarios: when the price touches the area of 50-MA and 100-MA, and when it makes a heavy dive into the area of the 200-day MA. In the first case, we can expect the support to be at $54.50, in the second – at $52.50, both adjusted to the expected future position of the indicator in the time of the drop.
Three paths
Based on these observations, there are two possible scenarios for a trader.
The first one, a standard for the long-term investor, is “buy and hold”. It is “guaranteed” that this stock will eventually rise, so the only thing you have to do is to have it in your portfolio and let it grow. Wait out the temporary drop, and the next one – your patience defines your profit.
The second one is a more active approach – you wait for the drop to take place, and buy once the price reaches the bottom. If you see it drop to $54.50 and start a correction upwards – buy; if you see it dive lower to the 200-MA area of $52.50 and then aim back up – buy. Sell when it gets back to the previous highs or above.
There is a third one, though. But it is riskier. You use the expected bearish cascade to sell higher and buy lower. That means you sell right now, and then wait for the price to go into the bearish move promised by the indications. Eventually, when the price is in the lower areas discussed before, you buy. The obvious risk here is that you make the first step now – before the price makes its move. If it doesn’t act according to the indications, you will be in a weak position. On the other hand, this tactic is the quickest one, and if it works out, it will let you gain the profit at the soonest. The choice is yours.
Opportunities
As you can see, stock market offers plenty of opportunities for a trader. To trade Coca-Cola with FBS, you need to:
- Open the MT5 account in your FBS personal area.
- Make a deposit.
- Download MT5.
- Log in and start trading.
In addition to that, you can learn how to follow earnings reports and trade on these news - they are major corporate performance indicators influencing stock price performace.
And as ausual, stay informed and learn the trading tactics.
Semelhante
Cresce as expectativas em torno da inflação dos EUA
O Bureau of Labor Statistics do Departamento do Trabalho dos EUA divulga sua leitura mais recente sobre o índice de preços ao consumidor (IPC) nesta terça-feira, às 09:30 GMT -3
Uma semana decisiva para o índice do S&P 500 e para o USD
O calendário econômico para os EUA promete mexer com os índices US 30, US 100 e US 500, já que os investidores estarão atentos aos dados macroeconômicos a serem publicados ao longo da semana em especial o índice do PCE e no final da temporada de lucros corporativos
Últimas notícias
Ofertas de Empregos Jots no radar dos touros do dólar
Depois da queda no mês de março em cerca de 26 mil vagas de emprego, a expectativa do mercado é de nova queda para 8,790M para o mês de fevereiro do mesmo ano
Investidores de olho no PMI Industrial do ISM
Nesta segunda-feira, primeiro dia do mês de abril, os EUA liberam os números dos PMIs da S&P Global e do ISM para a indústria
As expectativas dos mercados giram em torno do PCE dos EUA
Todas as atenções estarão nos preços básicos do PCE (núcleo) dos EUA, que excluem alimentos e energia para o mês de março, com a expectativa de que os números venham abaixo do mês anterior, que registraram um aumento de 0,4%
