Category Consumer Goods

Entries 12 Total

Coca Cola ($KO) : Kumo support and resistance breakout

Sep 8, ’11 12:21 PM

 

Coca Cola ($KO) has a pretty good run yesterday despite the average volume.

From the Ichimoku Chart, we can see how it opens low on Sept 6 and close high for the day. On Sept 6, the market is generally rallying upwards. What separates it from the rest is that $KO is supported by the kumo and it closes above the kumo; a breakout signal from the kumo.

The second confirmation comes the following day on Sept 7.

$KO gap up and make a move; breaking 2 resistance levels in one move and hitting a 52 week high in the process.

I believe $KO is going to head higher.

A peak at its Financial Ratio for Q3 (July 2011) from Google Finance suggest so.

Q3 (Jul ’11)2010
Net profit margin22.01%33.77%
Operating margin24.92%24.06%
EBITD margin-27.78%
Return on average assets14.41%19.51%
Return on average equity33.28%42.32%


The third confirmation from the chart comes from the leading kumo.

We can see that it has ‘twisted’ and is showing a bullish trend moving forward; reversing from its previously bearish outlook.

Note:

$KO reporting earnings before market on Oct 18

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$AAPL : Bearish cross. Watch for kumo support

Aug 17, ’11 10:43 AM

AAPL has a weak Bearish cross on its Daily Ichimoku Chart.

While the cross took place above the kumo; signifying that it is not a strong bearish cross at the moment, there is a need to watch out for the support below.

The overall market counter bear rally has been weak. And even for AAPL, it has yet to break through its previous support-turn-resistance level at around $385.

We can see from the chart that the kumo support below is very thin. And for AAPL to continue its bullish move, it need to stay above the kumo over the next 2 weeks (till Sept).

The thick leading kumo from September suggest that AAPL needs to stay above $357.

Below that, AAPL will enter the bear territory and likely most other companies and the indices will be too.

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Under Armour, Inc ($UA) : Still bullish? Next entry.

Jul 27, ’11 9:18 PM

 

I have some AUGUST CALLS that I have bought for UA prior to its earnings. Along the way, I took some profits.

Even then, yesterday’s UA dramatic drop despite its good earnings have me thinking whether my bullish view on UA will hold.

From the chart, definitely that long bearish candle is a sell.

1. At current level, it is sitting right on the Kijun sen support level around. High chance, we will see a little bit more selling over the next few days. There is no sign of a bearish cross (Tenkan sen cuts Kijun sen) at this point.

2. The leading kumo is still up and have not twist to show a change in trend.I will look for an entry nearer to $70 (where the kumo support is).  The entry will most likely be a combination of CALLS and Vertical Spreads (subject to change depending on chart).

I believe, UA is doing everything right at this point in time and it should have no problem hitting $90. I am looking at a September timeframe for UA to hit $90.

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