Categories
S&P500

$SPX . 1340 breached. Next target.

/ES 1340 support level has been breached since pre-market.

With this support breached, next target should be 1320 and 1306

If /ES rebound for the day, the resistance to look at includes 1340 and 1351; both of which provides good short entry with stop loss.

Categories
Consumer Goods

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

 

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.

[hang2column]

Q3 (Jul ’11) 2010
Net profit margin 22.01% 33.77%
Operating margin 24.92% 24.06%
EBITD margin 27.78%
Return on average assets 14.41% 19.51%
Return on average equity 33.28% 42.32%

[/hang2column]
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

Categories
Tech

$AAPL, $AMZN, $IBM, $BIDU : 4 stocks above kumo

 

 

There are definitely more than 4 stocks that still looks bullish on the Ichimoku charts.

However, my favourites are :

 

 

 

 

I have chosen them for the following reasons:

1. They have cash.

2. They are market leaders within their segment

3. Pricing power and economies of scale.

4. Technically on the Ichimoku charts, they are still on top of the kumo support or above the kumo; which are bullish signs.

For $BIDU, we could easily substitute it with $GOOG. In my case, I want a proxy for the China market and in this case $GOOG fails the test.

Both $AAPL and $AMZN are extending their revenue beyond their core. In $AAPL case, the apps revenue and ads revenue will increasingly adds on and even be much more than its hardware sales.

In $AMZN, the cloud computing platform which they are offering will see increasing value as they target entreprise customers in the likes of brokerages etc.