Swing Trade Idea (KO) – November 10, 2022
Our bearish trade for Thursday, November 10th is The Coca-Cola Company (KO). KO is part of the Consumer Staples Sector, which has performed at 0.93% over the last week, with KO underperforming relative to its sector at -0.07% over the same period, as both KO and its sector reached a level of exhaustion.
KO formed a lower high at a ley level of $60, from where it is trading lower. Strength is declining and the next support is at around $55, providing a good risk/reward bearish entry.
As a close, if KO were to trade above $60 for multiple days, this would invalidate our analysis and we would consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $1.64.
