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A new Market Call is posted
every market day.

Coca Cola Co, KO
Market Call™ for August 5, 1998
Contributed by Mark Seleznov, TrendTrader.com.

The purpose of this Market Call section is to educate readers in technical analysis patterns and indicators. As with all investment information, you need to research information and consult your financial advisor before initiating any strategies that are contained in Market Call.

Also, you must realize that as with all trading strategies, opinions can change quickly depending on market conditions and developments.

Pennant Formation.

After forming a Pennant Formation in the early July time frame. Coca Cola, KO, broke down on July 27. This is a very negative pattern and many times is seen at he end of an up move.

Over the past week, KO has drifted lower and has now broke the 50 day moving average line. Momentum is negative, MACD is negative and the stock has broken a 20 day low.

When you combine all these factors, this technical damage to this stock may point to lower prices ahead. I would exit longs and consider a short position here.

I would place my stop at 83.
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Mark A. Seleznov is a General Securities Principal and Managing Partner of Trend Trader, LLC, a NASD, SIPC broker/dealer firm located in Scottsdale, Arizona. A professional trader for over 25 years, Mark was a Market Maker on the Philadelphia Stock Exchange, a Retail Registered Representative, and futures trader. Mark is an author and recognized expert in equity Day Trading. His popular radio show, Let's Talk Trading airs Saturdays at noon on KFNN 1510 AM in the Phoenix area. He conducts seminars in Equity Day Trading and offers his firm traders training and support. Mark writes articles for market publications and Internet sites that focus on trading.

Market Calls is a daily syndicated column on trading by Mark A. Seleznov, Managing Partner of Trend Trader, LLC. For information on obtaining Market Calls for your web site, newspapers, or publication, contact Trend Trader, LLC at 602-948-1146

Disclaimer: Trading in securities may not be suitable for all individuals. Consult your broker or other professional to determine your suitability. This is not an offer to buy or sell securities. The advice given above is of a general nature and should not be taken as a recommendation to buy or sell the referenced security.

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