Mixed results for Coca Cola Bottling Co. Consolidated (COKE) as the recently 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 competing 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 the 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 the week, depending on the moment of time during the trading week the level is reached and, of course, on the expiration dates offered.
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Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
