KO, OPK updates 07/11

KO: A review of the monthly chart suggest intermediate-v of major-5 of Primary-III of Cycle-3 is underway. Major-5, like intermediate-v is most likely forming an ending diagonal (ED), where waves 1 and 4 overlap. Let’s keep this in mind for when Primary-V gets going… The ideal target is around $49; which is the 123.60% extension of Cycle-1, measured from Cycle-2, and typical for a 3rd of a 3rd wave. Primary-IV should then ideally drop back to the 76.40% retrace at $35ish before Primary V moves price to the 161.80% extension at around $60. Hence, from current levels, upside potential is about $5, whereas downside risk is $10. Please keep this in mind going forward as the upside potential will get less while the downside risk increases.

 

KO Monthly

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OPK: Reviewing the monthly chart since last, it is most likely this stock has hit a multi-year low. Price has moved back above the 200m SMA and as well as above the blue support zone (which is now thus resistance). It’s currently bumping up against the 20m SMA. The Monthly TIs are back up and on a buy and the RSI5 has not been this high since the decline started in 2015. Hence, all indications for a sustainable long-term bottom are in place. Cont’d below.

OPK monthly

The other item in favor of the Bulls is price has moved back above its 200d SMA for the first time since January 2017. That’s a significant development. Resistance on the daily chart is now at around $7, which is a logical next target for this -what is most likely- a 3rd wave of a new impulse up.

OPK daily