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 margin22.01%33.77%
Operating margin24.92%24.06%
EBITD margin27.78%
Return on average assets14.41%19.51%
Return on average equity33.28%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