| Every now and then a chart begins to show the kind of structure experienced traders immediately recognize. Not because the move has already happened, but because the conditions for the next phase are starting to form. After a strong advance, some stocks give back their gains. Others stabilize near their highs while momentum cools off. When price behaves this way, it often signals that the trend remains intact and the market is simply resetting before the next move. That’s the pattern currently developing in COCO (The Vita Coco Company), where price has rallied strongly and is now consolidating just below resistance. Let’s take a closer look at the structure. 📊 COCO – Consolidation After Strong Expansion ✅ Trend Overview COCO trades near $52–$53 following a powerful multi-month expansion. Higher highs / higher lows since mid-2024 Base formed near $24–$28 Breakout through $35 triggered expansion Strong acceleration into $55 Current structure: tight consolidation near highs Support: $48–$50 Resistance: $55–$57 This type of structured trade is part of the Freedom Income Engine system. Learn more here 🔍 Momentum RSI (14): ~55 — Bullish regime Holding above 50 Momentum cooled after the recent surge No bearish divergence Healthy consolidation. 📃 Original Setup Continuation after expansion into the $55 resistance zone followed by controlled consolidation. 💡 Trade Idea Primary Entry: $48–$50
→ Prior breakout shelf / consolidation support Aggressive Entry: Weekly close > $56
→ Confirms breakout to new highs Target: $65–$70
→ Measured continuation move Stop: < $46
→ Break of consolidation structure 📃 Why This Works ✅ Strong uptrend intact
✅ Prior base breakout confirmed
✅ Consolidation near highs
✅ RSI holding bullish regime Compression near highs often precedes trend continuation. ✅ Summary Above $48–$50, the primary trend remains bullish with potential continuation toward $65–$70. A weekly close above $56 would likely trigger the next expansion phase. Income Traders → Bull put spreads below $45–$47 Swing Traders → Buy $48–$50 pullbacks
→ Add on $56 breakout
→ Target $65–$70 🔔 Trigger Weekly close > $56 💡 Catalyst Premium beverage demand growth
Brand expansion and distribution
Consumer staples strength
Earnings growth in core channels What makes setups like this interesting is what often comes next. When a stock rallies strongly and then begins consolidating near its highs, the chart is essentially building pressure. Sometimes that pressure fades and the stock drifts lower. Other times, the consolidation simply becomes the launching point for the next expansion move. Right now, COCO is still in that decision phase. If the structure continues to hold and resistance eventually gives way, the next leg of the trend could develop quickly. Until then, this is simply a chart worth keeping on the watchlist as the setup continues to unfold. We’ll be watching closely. — Casey Stubbs
Freedom Income Options | 
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