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Chapter X: The mood of the market toward Coca Cola show up in the Daily Closing Altitude and other Sentiment Indicators.


Sentiment Analysis based on Historical Prices and Volumes of KO common stock.



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Week-end Altitude of Coca Cola

For Coca Cola, the Negative Volume Index is a well known indicator for market sentiment. This version is includes several enhancements added by Norman Fosback. The indicator is the proportion of the daily NVI as compared to the average daily NVI over the past year. The plot is orange below the unity line (neutral implication) and green above (bullish).





How to read the Calibrated NVI for Coca Cola:

In its modern form, the NVI is an elegant indicator, but requires some care in interpretation. The orange plot (NVI less than unity) is not considered bearish because a lowering of the NVI is a natural tendancy under many market conditions. When the plot is in the green area, it indicates that prices are rising on low volume sessions, which is contrary to the normal condition. This can be a tip off to "accumulation behaviour" on the part of someone or some group in the market. The indicator seems most significant when prices are falling and the NVI is rising, which indicates a market that is "buying on the dips".




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KO: Negative Volume Index (Fosback NVI)

The NVI resembles a fundamental indicator more than a technical indicator in at least one respect, as it seems to be indicative over a span of months or quarters, rather then the extremely short predictive span typical of many technical signals. This chart for Coca Cola covers the few years before the start of the chart at the top of the page.




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Weekly Average Closing Altitude of Coca Cola

Values above the midline indicate that day traders have positive feelings toward KO while traces below the midline are a sign that speculators are afraid to hold on to the issue overnight. Coca Cola stock prices are shown in red.






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KO: Daily Up Volume vs Down Volume

Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. Coca Cola share prices are overlaid in red. This is an important indicator for market timing, as a change in direction of the volume line may happen before the price turns.




For Clients: More Market Sentiment Analysis of Coca Cola

Influence of Investor Sentiment on KO stock prices. Also, roadmap and Summary of most effective indicators:

Public Pages : More KO Technical Analysis Chalk-Talk Subjects

KO Price Forecasts

KO Traditional Time Series Analysis

Momentum Investing

Multi-Spectral Analysis

Political Season Trends KO

KO Transaction Volume Trends

KO Analysis of Short Term and Long Term Risk

KO Calendar Seasonality

Back to KO Index Page


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We do not recommend the purchase or sale of this or any other issue. Research shows that most people who invest in common stock will lose money. We do not advocate speculation in mutual funds or index funds. Pages on this site are for entertainment and academic purposes only. Charts and concepts are property of Hybrid Technical. All Rights Reserved. Content is Copyright 2008 by Hybrid Technical




Next Chapter 1:

Classical Analysis provides a good overview of the data for Coca Cola, and reveals patterns that will be explored with detail in later sections.


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