Weekly Pick: COCO
Clean entry with upside pressure.
COCO has consistently scored middle/upper Tier 1 in my model for weeks. The trend was intact, but the stock was extended and the entry didn’t make sense so I passed over it as a trade, but I’ve been watching.
The 50 EMA is now catching up on the Daily. Price digestion without damage is what I look for in a strong name. It now looks ready and it’s my Weekly Pick.
Company Overview
Vita Coco Company Inc is a branded beverage company focused on coconut water and adjacent hydration products, distributed broadly across U.S. retail and international channels.
Fundamentals & Ownership
Market capitalization $2.98B
Current p/e 45.24 | Forward p/e 34.82
Sequential annual sales growth since 2019
Clean balance sheet with a solid cash position
Insiders have 16% of the float. Institutions have 82% of the float.
10% of shares are borrowed short.
Technicals
On the Daily, the 50 EMA is approaching price.
On the Weekly, above the EMA stack in full bull structure and resting on the 8EMA.
Low volatility price digestion and consolidation offers an entry with defined risk.
Daily
Weekly
Monthly
Risks
Market volatility always applies.
If price loses the Daily 50 EMA, the setup degrades quickly.
While the 50EMA has caught up on the Daily, the 8EMA has marginally undercut.
How I’m Trading It
Starter position in shares.
Add when the 8EMA recaptures the 50EMA.
Feb $55 calls if the spreads tighten.
Risk defined below the Daily 50 EMA / recent support.
I’ll sell quickly into any significant strength.
If it continues to chop sideways I’ll be patient as long as it holds support.
If it loses structure, I’m out. No adjustments. No averaging down.
This is consistent with how I’ve been trading lately: take quick gains, set sell-stops unforgivingly tight, recycle capital, stay heavy cash.
I trade what I post.
Weekly Picks and mid-week Trade Notes for subscribers.
This isn’t an alert service, and I’m not your financial advisor.
Just sharing the trades I take. Putting it out in public keeps me disciplined.
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