Levels to Watch: 50DMA-$38.33, 100 DMA – $35.73, 200 DMA- $44.33.
Support 1-$38.94
Support 2-$35.73
Chart Glance: Another choppy chart, looks like soda got ahead of itself before earnings. Bearish gap down on strong selling volume. Looks to be support between $35-$38 range. Chart suggests more choppy and range bound action to come.
Growth in Soda sales expected in US were higher then estimates. Soda opened 200 new stores in Brazil and is expanding heavily into the Japanese market. CEO stated, “that Q1 looks very STRONG at first glance.” In my opinion, SODA is way oversold and this might be a huge buying opportunity. Soda didn’t miss earnings, they beat, just not as high as analysts estimates. Finally, in the CC, the CEO states, “we are trying to expand into restaurant/commercial divisions.”
By Greg Zimny