Swing Trade Idea (KO) – October 25, 2022
Our bullish trade for Tuesday, October 25th is The Coca-Cola Company (KO). KO is part of the Consumer Staples Sector, which has performed at 2.77% over the last week, with KO overperforming relative to its sector at 3.38% over the same period.
KO broke above a key level at $57 while it also crossed above the 21 Day and 55 Day EMA. KO has a Relative Strength of 7 (out of 10) while strength is increasing, providing a good risk/reward bullish entry.
As a close, if KO were to trade below $56 for multiple days, this would invalidate our analysis and we would consider cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves above $2.22.
