Fresh Local High for KO. What's next?Fresh Local High for KO. What's next?
-Today, we will speak about KO. Since the bottom of March 2020, the price has been moving on a bullish trend. It's not the most beautiful bullish trend you have ever seen, of course. BUT the sequence of Higher Highs and Higher Lows provides us with a clear idea of the major trend.
-Using Trendlines (White lines), we can define the higher and lower boundaries of the bullish trend we observe. These lines are beneficial to establish which are the limits of the ascending situation. In general terms: IF the price is above the Bullish Major Trend, we should keep thinking in long situations.
-Yesterday (10/05/2021), the price made a new local high above the previous one at 54.96. We can see that at the current level, we have a significant resistance zone since September 2019
-So, what can we expect here?. The ideal scenario would be to wait for a correction that fits the size of the circle and presents similar proportions in time as the one that we observed before on DEC 19 - JAN 2020
-If that scenario happens, the breakout of that structure would be a great confirmation to look for Bullish setups or situations towards the next resistance zone at 59 - 60. Please consider these two things
-1)Waiting for Corrective patterns before trading provides you with a better trigger in terms of safety than trading with a market order. However, the disadvantage is that if the correction you are waiting for does not happen, you miss the movement.
-2) The corrective patterns may happen at the edge or above a support resistance zone; it's important to keep in mind that you are looking for a retracement and adapting that idea to the infinite variations the market makes.
Thanks for reading!
