I have a bias towards a short position here but i would prefer to see a clear break below the trendline....let's see
Coca-Cola (KO) A nice bell-weather has closed (2-days now) below the upward recovery trend established in 2009 @the BTM. Add'l OBV has been on a downward trajectory most of 2012, breaking the two uptrends from 2009. There are fundamental reasons for the decline, 10yr rates are competing with it 2.8% yield and elevated PE ratio. I beleive that the stock will...
What we see is a result of the pressure , which lasted almost three months. Now, this EMA 50 line can be used as a stop. The MA 200 line is also the "neck" of a "head and shoulders" figure
Coke is at a critical point. It is nearing the end of a narrowing pendant trading range and close to a support line that has held up pretty good since the end of March. Wait for a close outside of this range and roll with it...whatever way that may be. Happy trading!