I want to revisit the stock Coca Cola Femsa (KOF) since it was first profiled on June 5th on zentrader. It’s been on a bullish tear which is no small feat in this market, but I think the cracks are starting to show and it’s time for a corrective period to shake off some of the bullish traders. This will be a good thing for this stock going forward and give us all a 2nd chance to get in this stock. It’s obviously going to be a big winner when you consider recent strength and worthy to be on our long term watchlists.
My view is if we can close below friday’s lows on a daily view then that will start the selling by those who want to lock in profits and allow this to have a natural pullback. I would start to get interested in this stock around the $120-122 range and I reserve the right to change my projection based on how it pull’s back. I want to see light volume, contained selling, and an orderly decline. And it goes without saying no earnings disappointments.
We’re entering earnings season next week so keep your hats on. This is either going to be the catalyst for the markets to rally or sink.