Is it Time for a COKE or Wait for It to become Ice Cold!

Temperatures Soaring – Is it time for a Coca Cola drink? In today’s article, we will look at the difference between COKE and KO tickers and determine whether it’s the right time to consume Coca Cola (COKE) or should we leave it in the refrigerator for now and wait for it to become Ice cold? We will also see if Christiana Ronaldo really caused a $4bn hit to the company when he asked to remove Coca Cola bottles and preferred water during his press conference back on June 15.

Ronaldo news about COKE and KO

For those wanting to invest or trade shares of Coca Cola company, it is important to understand the difference between the two tickers. The actual production of Coca-Cola’s well known brands is done by independent bottlers and distributors; commonly known as “bottlers”. To make things  confusing for anyone hoping to invest in Coca-Cola is that the bottlers stock name is nearly the same as the parent company.  For clarification, here are the companies with the appropriate stock tickers:

Coca-Cola Company (KO): Parent Company  Market cap: 242.292B as of August 10, 2021

Coca-Cola Consolidated (COKE): Bottling Company Market cap: 3.703B as of August 10, 2021

Coca-Cola Consolidated (COKE) is the largest independent bottler of Coca-Cola within the United States and has a market cap of 3.703B and 7.14M shares outstanding. Today, we will look at the long-term and mid-term Elliott Wave structure of COKE, the next blue box area where we can see buyers appearing and whether Ronaldo really caused a hit of $4bn to the parent company or the bottler.

COKE Long-term Elliott Wave Analysis (Monthly Chart)

Monthly chart shows data going back to 1975 or just before then. Rally from the all time low is unfolding as an Elliott Wave Impulse when wave (I) completed at $58.00, wave (II) completed at $15.00 while wave (III) completed at $413.39 and wave (IV) completed at $188.08 in March 2020. We have already seen a new all time high since then with price reaching $460 in June 2021. Expectations are that current pull back is wave ((4)) within cycle from March 2020 and should end with a new high above $460 after which we should expect a pull back in larger 3, 7 or 11 swings to correct cycle from March 2020 low at minimum. In terms of Elliott wave, we could be ending all of wave (V) and hence end cycle from all time lows but based in our correlation analysis, we doubt that would be the case and hence favoring the view of an extension within wave (V) or the more bullish path which is shown in the second chart.

COKE Monthly Elliott Wave Analysis

COKE More Bullish Long-term Path (Monthly Chart)

This is the more bullish path which shows Super cycle wave (I) ended at $413.39 in May 2019 and wave (II) completed at $188.08 in March 2020. As per this view, we are within wave I of (III) and after cycle from March 2020 low ends, we will pull back in wave II to correct cycle from March 2020 low and start the strongest part of the rally which would be wave III of ( III).

COKE Monthly Elliott Wave Chart More Bullish path

COKE Mid-term Elliott Wave Analysis (Daily Chart)

Chart below shows cycle from March 2020 low is still alive. This low is labelled as blue (IV) on this chart or it could be blue (II) in case of more bullish path shown above. Wave ((3)) is proposed to be over at $460 and wave ((4)) pull back is proposed to be in progress and is expected to take the form of a double correction lower. As bounces fail below $434.55, price can drop as low as $353.50 – $303.39 in wave ((4)) and then it should resume the rally in wave ((5)) to end cycle from March 2020 low or produce 3 waves bounce at minimum. Even though, it’s less likely but if price fails to break below July 8 low and makes a new high above $460, then new high should be treated as wave (5) of ((3)) and we would still look for a wave ((4)) pull back later on and then wave ((5)) up to end cycle from March 2020 low. We cycle is bullish, we don’t favour selling and expect buyers to appear in the blue box area to resume the rally in wave ((5)) or produce 3 waves bounce at minimum.

We can also see that price did take a hit on June 15 but Ronaldos’ actions just acted as a catalyst, market was already pulling back after having completed wave ((3)) at $460 and we think soon stock will reach a buying area from where it can rally to another all time high and buyers will be thanking Ronaldo for it.

Source: https://elliottwave-forecast.com/stock-market/time-for-coca-cola-coke-drink-or-drink-ice-cold/