Based on good technical signals, COCA-COLA CO/THE is potentially setting up for a breakout.

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.

Deciphering the Technical Picture of NYSE:KO

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, KO scores 7 out of 10 in our technical rating. 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.

• The long and short term trends are both positive. This is looking good!
• When compared to the yearly performance of all other stocks, KO outperforms 51% of them, which is more or less in line with the market.
• KO is an average performer in the Beverages industry, it outperforms 57% of 34 stocks in the same industry.
• 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 61.01.

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

How does the Setup look for NYSE:KO

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:KO currently has a 9 as setup rating:

KO has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 60.55. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 59.90, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:KO?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

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.