The best trade I made so far.
I didn't actually do much of active trading until just awhile ago, I was mostly doing passive investing instead.
However, there was a trade I made where i felt like the entry and exit levels were really good.
![Coca Cola 1D](https://sgsnsimg.moomoo.com/sns_client_feed/101785696/20240515/18e1e96a2961da2b67920e0024fe68af.jpg/big?area=101&is_public=true)
This is the daily chart of $Coca-Cola (KO.US)$ , i traded it as I needed to buy a stock that was stable and had a high chance of growing to qualify for some promotion (forgot which one), so I looked into the fundamentals and saw that most people thought it was undervalued.
As a dividend-yielding stock known as a dividend aristocrat, I expected valuations from analysts to be reasonable and easy to prove (due to constant dividend growth.)
![The best trade I made so far.](https://sgsnsimg.moomoo.com/sns_client_feed/101785696/20240515/7f9373f6173f1e6efdf4e0eb5984663d.jpg/big?area=101&is_public=true)
Now, i dont have the exact screenshot of what analysts believed Coca Cola to be valued at during that time, but this is what it looks like now:
![The best trade I made so far.](https://sgsnsimg.moomoo.com/sns_client_feed/101785696/20240515/1acfbfa5d1bed965c74741ff1527b7ce.jpg/big?area=101&is_public=true)
As you can see, the average analyst price is at 68$ a share, while the current price is at 63$ and ofc was around 58$ when I made the trade.
Now, I also noticed that $Coca-Cola (KO.US)$ 's price was about to hit a strong support level, which also served as a resistance level and I felt that due to all these factors, it had a chance to breakout, and it did.
The price brokeout of the 58$ level (indicated by the blue line)
![The best trade I made so far.](https://sgsnsimg.moomoo.com/sns_client_feed/101785696/20240515/33a05eae047df90882ea676745aa511e.jpg/big?area=101&is_public=true)
As you can see, it broke out directly after the trade I made and it hit another resistance level indicated by red before falling back down to my purchase price, which usually I would see as confirmation if price found support near the initial breakout, which it did.
![The best trade I made so far.](https://sgsnsimg.moomoo.com/sns_client_feed/101785696/20240515/65057d2f114827d3b031ad7b2f8b21ea.jpg/big?area=101&is_public=true)
Afterwards, I sold to take profit once it eventually hit a major resistance level as indicated by the massive red block, i made the right call and price basically plunged directly after hitting the resistance level at 61$.
Price then found support at the initial breakout price and i would've bought again if i noticed it, but at this point i had taken profit and forgotten about it.
The total profit I made in terms of % is around 6-6.5% as seen by the white price range.
Unfortunately this wasn't a sizeable bet, I just wanted to qualify for a promotion but made a very clean trade in the meanwhile.
I hope this helps, though usually for breakouts i'd wait after the breakout point turns into a verified support (as we saw happen) before taking the position.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Kind Pumpkin : Nice execution
John Doe78 : Nice!