Score 8.8 (out of 10): COCA-COLA sets up for +6.7% rally in 3 months

67

What’s Going On Here?

Sustainability-focused hedge fund Engine No. 1 has taken a small stake in Coca-Cola Co and is pushing the soda giant to ramp up its efforts to recycle more of its cans and bottles. Engine No.1 has suggested a partnership between Coca-Cola and garbage collection and recycling company Republic Services Inc, in which Engine No. 1 holds a stake.

Why Now?

COCA-COLA CO/THE has triggered a new technical analysis ‘rally reversal’ signal. During similar occasions, COCA-COLA CO/THE shares had a median return of +6.7%, over the following 3 months – based on 10 historical occasions with 9 of those showing positive returns (90%). This buy signal for COCA- COLA CO/THE received a high score of 8.8 (out of 10). This insight was generated on 2022- October-18 with last price of 56.44.

What’s This Asset About?

COCA-COLA CO/THE is in the Beverages-Non-alcoholic business. Based on the last 2 years’ risk/return profile, this asset is seen as Moderate Risk. Ticker symbol: KO US.

What’s My Risk / Reward and Time Horizon?

We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 60.21 (+6.7%) has been reached. Based on COCA-COLA CO/THE’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 55.04 (last price at 56.44), which is equivalent to a -2.5% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

5.5% (September-2021), -0.4% (July-2021), 12.7% (February-2021), 2.5% (November-2020), 11.9% (July-2020), 3.7% (April-2020), 7.9% (October-2019), 13.5% (March- 2019), 0% (January-2019), 10.6% (May-2018).

Historical Chart:

Summary:

NameCOCA-COLA
ViewUp
Star (1 to 10)8.8
Target+6.7%
Time3 months
Hit Rate90%

Leave a Reply