(BEE: 4.54 +3.89%) Strategic Hotels & Resorts
I now have technical substantiation of my $4 target – inverse head-and-shoulders on the daily chart.
Volume pattern still shows accumulation.
I’m not getting attached to the stock, and really welcome any negative comments on this trade idea.
Click to enlarge
Click images to enlarge
Daily chart
On Friday it traded on almost 5 times the average volume, yet closed almost unchanged.
If all the lines and squiggles aren’t enough, how about selling on strength? KO topped the list on Friday, with $800MM+ outflow. In a single day. Blow-off top? volume confirms that.
Still not convinced? Warren Buffett is just about OUT OF KO. That, for me, seals it.
“A couple of years ago Buffett came out and said he wished he had sold a number of his key holdings like Coca Cola.” He specifically had said he wished he’d sold KO back in the 80’s when share price went as high as $85 (I think, too lazy to check, sorry). And he’s finally out.
Weekly chart
This doesn’t look too bearish. Parabolic and over-extended? Perhaps. Bollinger Band crash trade signal? Sure, but there was one last week, too.
I’m bearish on KO, just playing devil’s advocate with myself here.
My downside targets: first stop $50, then $45, and possibly $42.
Time horizon: 3 months or so.
Click to enlarge
Short/buy puts on a bounce
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