What’s Next For Coca Cola Stock As Revenue Targets Are Missed?

What’s Next For Coca Cola Stock As Revenue Targets Are Missed?
February 11, 2015

 

Mixed results for COKE (Coca Cola Bottling Co. Consolidated) as the recent announced results saw a big increase in homeland sales while overseas sales dropped further.

One explanation would be that a stronger dollar is hurting the company and this is the explanation why the US sales are on the rise. However, profits are at a healthy pace and the recent focus on more premium products should pay off in the long run.

A concern would be competition on a global basis as main rival Pepsi announced bigger than expected results, but then again the problems the two companies are facing worldwide are similar and should affect them in the same way.

Despite fundamental stand, the technical picture of the Coke is quite bullish as the 100 level seems to be a pivotal one in the sense that by the time it was broken once, with the 105 being reached, it has been crossed on multiple occasions, invalidating its psychological nature.

This is a bullish pattern that is forming there, a contracting triangle that should act as a continuation pattern and therefore I am a buyer of call options by the time the five waves of the triangle are completed and by the time 102 level is broken.

Actually, a good way to solve this triangle is to filter it through the 102 level and take that as representative for triggering call options. As for the expiration date, I would look for anywhere between one week/end of week, depending on the moment of time during the trading week the level is reached and, of course, on the expiration dates offered.

If you would like to open a new trading account, have a look at our list of approved Binary Options brokers.

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Andrew Wright

Prior to founding tradersasset.com in 2014, Andrew worked as a proprietary trader, then as a market maker. As a market maker, he traded options in over 100 stocks, he then began trading currency pairs in 2013. Andrew still actively trades both, and prides himself on educating and informing traders on the benefits of both Binary Options and Forex.


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