The Long Investor

$KO

Added 2023-11-21 18:36:25 +0000 UTC

Buy zones are on our charts for a reason.

More times than not, when the prices of our favourite stocks enter the buy zone, they consolidate for a short time and bounce out of it quickly, in the matter of weeks.

$KO, $ZM, $SQ, $DIS to name a few lately.

The problem with this is that when a price has been beaten up and its come all the way down to the buy zone (the undervalued area, with a margin of safety) people do not want to buy it then.....they want to follow everyone else....but this is exactly the time when you should buy, as long as the fundamentals remain the same.

And with these 4 names, they were still strong but were influenced heavily by external factors, they remained strong companies, in spite of the decrease in their share price.

And that is why they have bounced and recovered well so far.