X or KO or UNH, Which Should You Choose?
A friend of mine is making this simple analysis:
KO, on bottom channel + uptrend; UNH = on bottom channel + uptrend; X = forming rising wedge
I’m not a fan of alien languages that is brought by many technical analyst so I’m going to speak in human language.
I might be a contrarian to those suggestions and here’s my simple analysis (technical only, without fundamentals behind it):
- X, It’s very late to buy it now, it’s already above it’s MA (I’m not going to tell which, go figure it out yourself), although MACD indicator is going strong, there won’t be too much uptrend for this stock anymore for the next 2-3 months and thus the gain won’t be too much if you buy it now. My suggestion is, try to buy put in 3 months time range. And I really don’t know why he said that this stock is forming a rising wedge…
- KO, I think KO is on minor bearish move because I spotted a rising wedge through the Price Oscillator. It might be a little bit late right now but if you wanted to get into position, go with buy put or sell call (it’s below it’s MA too!)
- UNH, the market is still deciding where this stock should go so I’m neutral on this one.
I’m going to put my (virtual) money where my mouth is ;) — tomorrow that is, I gotta eat now for my ’sahur’.
[...] Yesterday (well actually this early morning but you have to excuse me that I live 12 hours ahead of New York…) I said that I’m going to put my (virtual) money where my mouth is so today I bought the options for KO (I despise UNH and X yesterday). So I long put at the strike price of $45 on November’s expiration. Why November? I’m not very sure about this but the expiration date on October’s contract is mostly around 20-ish this month (the time decay is really close — not good). [...]