Unfortunately, KO now has a Death Cross. The 50 DMA has moved below the 200 DMA. This is not a good thing. It puts KO in bear country. By the way, there is an open gap at 36.28 which needs to be filled. Gaps are filled 95% of the time. It doesn't matter how long it takes. This one will be filled.
Please inform Mr. Buffett that I said, based on a certain chart pattern I am seeing, that KO has a target of about 31 or 32. It will not get there overnight because, based on Elliott Wave Theory, stocks zig zag. In other words, they travel in waves. They do not go straight down or straight up.
However, Mr. Buffett is right. You can weather the storm and wait until it comes back up, or you can walk away with a nice profit and buy it back cheaper.
The last one did not last too long before forming a golden cross and going to 42.
It also looks like it is forming a Bullish Falling Wedge Pattern, as well as both the fast and slow stochastic bottoming out.
I never had the GAP thing explained to me, if you would be so kind.
arewjay, some technicians say all gaps must be filled. However, I believe they are filled 95% of the time. This is an empty area where no trading was done. Mr Market does not like voids on its chart, and will often send a stock back to fill that gap. It does not matter how long it takes........days, weeks, months, and yes, even a year or two. Gaps are warnings that something in the future will happen to bring stock price down. The gov't shutdown certainly qualifies, also bad earnings. I believe that gaps correlate with the Elliott Wave Theory.
There are multiple chart patterns, and you are correct, one is a Bullish Falling Wedge pattern. Inside this wedge, there appears a possible Inverted Head & Shoulders chart pattern may be forming, also bullish with a target of about 42; but strong chance the Falling Wedge will contain it and keep it from playing out. It is possible this Falling Wedge could still reach 36.28; and it is possible this Falling Wedge could break down.
On a larger scale, I also see a possible Descending Triangle which is a bearish chart pattern. I believe the Bullish Falling Wedge is part of this pattern.
One last thing you should know. Gaps are like magnets. If there is one in the area, strong chance the stock will probably go there. GL