KO, Coca Cola

KO june 2012

About 3 years ago this stock looked like a sell already at about $65, then again at about $70 and here we are at $78. Now it really looks like a sell, furthermore a very plausible count is again presenting itself, as shown on this semi-log chart. One can never exclude the possibility of an attempt to double top (about $90), but otherwise everything is in place for a rather big decline. The initial target, as usual, is the 4th of previous degree, just under $20! In more detail;

ko june 2012 sKO june 2012 vs

What adds a little confidence to this count is the rather obvious “megaphone” which is actually an expanding triangle and therefore has to be a fourth wave (of c of B)! Moreover we are at the top of the channel and the RSI and MACD are both going down.

Fundamentally this stock trades at a high p/e of 20+, yields 2.7% and has a Beta of 0.43. If you own it, sell it, if you do not own it , it is probable a good short but if options are used make sure you have time on your side.