Swing Trade Idea (KO) – September 30, 2022
Our bullish trade for Friday, September 30th is The Coca-Cola Company (KO). KO is part of the Consumer Staples Sector, which has performed at -7.68 for the last month, with KO following this pattern towards a major support level.
KO found support at a major support area of $56, from where we have seen some bullish reaction. As this is a counter-trend trade, we expect to see some further upside, with the next resistance at $59. Although the 1M and 6M trends are bearish, it has a relative strength of 7 (out of 10). This provides a good risk/reward bullish entry.
As a close, if KO were to trade below $56 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves below $0.60.
