Will COCA-COLA CO/THE Break Out? A Technical Analysis Perspective.

Our stock screener has spotted COCA-COLA CO/THE (NYSE:KO) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:KO.

Insights from Technical Analysis

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

We assign a technical rating of 7 out of 10 to KO. Although KO is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the performance of all stocks over the past year, KO turns out to be only a medium performer in the overall market: it outperformed 49% of all stocks.
• KO is part of the Beverages industry. There are 34 other stocks in this industry, KO did better than 60% of them.
• KO is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so KO is lagging the market.
• In the last month KO has a been trading in a tight range between 58.66 and 60.46.

For an up to date full technical analysis you can check the technical report of KO

How do we evaluate the setup for NYSE:KO?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:KO has a 10 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, KO also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 60.09. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 59.81, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for KO in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

How can NYSE:KO be traded?

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

More breakout setups can be found in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.