COKE Preliminary trading plan for earningsBasically, coke is setting up for a nice little trade setup around earnings. As we sit right now, the short term indicators are nearly flipped, and the longer term indicators are crossed down, which implies some bearish movement incoming. Nov 7th is the date to eye, but not only that, catching a falling knife in this case has you catching into some strong support.
My ideal trade would be a bounce around 615-618, with confirmation on the top side of both trend support and horizontal support. Ideally, the bounce is seen and the entry occurs before 625.00.
If this price movement lines up with earnings, as shown by the pink arrow. It would hit a lot of needed price targets, confirmations, and allow for a nice movement towards the topside.
This is a rough trading plan and subject to change as trends start to redevelop and break. However, either way, it sets up a nice play for earnings. In other words, if we pump into earnings and we're nearing 650-680, I'd be looking for short plays. IF we are down around 621 a week before earnings or the day of or after the announcement, I'd be using that as an chance to jump in long with some pretty good odds.
