KO, Weaker Than Rest Of The Market, Trading In Channel!

Hello Traders Investors And Community, welcome to this analysis where we are looking at recent events, the current structure and what we can expect from KO (KOKA-KOLA) the next hours and days. As I already mentioned in previous analysis there are gainers and losers in the corona-crisis which showing up weaker than the market or stronger than the market, this is a similar mechanism we have already seen in the past for example with the dot-com-bubble in 2000 in which many companies were sorted out due to inefficiency and other reasons. Normally KO should minimum be as strong as the S&P 500 index when not also stronger than this index because it is a consumer durable where demand boosted during the lockdowns and which can still steadily increase the next times when looking at possible new lock-down-restrictions but this does not currently show up in KO which also showing up in the technical analysis, therefore, we are looking at the 4-hour locally timeframe.

EXAMPLE STOCK: J-JOHNSON, Stronger Than Rest Market (4-Hour Timeframe):

EXAMPLE STOCK: BERKSHIRE, Weaker Than Rest Market (4-Hour Timeframe):

As we can examine now when looking at my chart is that KO is printing a clear bearish picture below the important 500-EMA in black where we have strong stocks which are above this EMA this show the current weakness of KO and also the fact that it is consolidating way below the all-time-high where we have other stocks which are near at this level or already formed new highs, this is another factor counting into the bearish environment which is currently developing in the stock here. In comparison, this stock has a similarity to BERKSHIRE which is also in a bearish state with more potential to the downside upcoming. Now, as you can see in my chart KO is forming a parallel channel here marked in blue in which it is consolidating, as it is approaching the lower boundary another time now we can expect a bounce from here higher to the upper boundary which will complete the wave count it is currently forming and from there form a leg to the downside which is more possible at the moment than the immediate bullish continuation above the upper boundary when the stock has done this like you can see it marked in my chart we need to see and elevate how the stock develops further.

Just on the technical side of things KO is a clear loser of the current corona-crisis in comparison to the rest-market and in comparison to the leading S&P 500, this can spring up from a decrease in demand to drink and consume unhealthy consumer goods which have a lot of calories and sugar and can cause serious health problems, this theory can be evidenced by the fact that more and more people these days, especially in the corona health crisis, want to live a healthy and sustainable long life, this approach can fundamentally underline the bearish picture the stock is currently showing. We will see how this is developing the next times so far and if there is more downside to expect as you can see in my chart KO needs to hold the highly important 76.8 % Fibonacci-support for solid support when falling below that level there is a high probability given that bearish pressure to the downside increases further. It will be interesting to see how this is playing out further and especially if KO can back up when the major other market goes up or if it fails and the bearish sign increasing more, as this is now the time where it shows up who is profiting from the corona-crisis further where many companies from the digitalization industry have better cards at the moment.

In this manner, thank you for watching, support for more market insight, and all the best!
Even the smallest shift in perspective can bring about the greatest fortune.

Information provided is only educational and should not be used to take action in the market.

Comment:

ANALYSIS UPDATE: KO continued with the completion of the crucial wave-E within the channel formation.

KO since pulling back off the crucial resistance cluster formed a massive channel breakout.