Stock: Coca Cola Co (NYSE:KO)
Position opened: Entered short at 6037. Stop placed at 6114 (Entry + 77, which =1.5ATR). Limit placed at 5887.
Reason for entering trade: KO has been funneling into the final stages of a bearish, upward wedge formation; this is around the same level as its 52wk high. Both RSI and MFI indicate overbought. Stock looks due for a correction. Limit= 150 points below entry which represents the target price for a correction (based loosely on previous correction). Trailing stop added to protect profits.
Position closed: Stopped out at 6114.5.
Synopsis: I took a gamble on which direction the breakout would take and I lost. I still view the stock as due for a correction and will monitor it.
