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

Our stockscreener has identified a possible breakout setup on COCA-COLA CO/THE (NYSE:KO). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:KO for potential opportunities.

Zooming in on the technicals.

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.

We assign a technical rating of 10 out of 10 to KO. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, KO is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, KO did better than 91% of all other stocks.
• KO is currently trading near its 52 week high. This is a good sign, certainly because the S&P500 Index is not trading near new highs.
• In the last month KO has a been trading in the 66.05 - 73.95 range, which is quite wide. It is currently trading near the high of this range.
• KO is part of the Beverages industry. There are 32 other stocks in this industry, KO did better than 67% of them.

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

How do we evaluate the setup for KO?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, KO exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

KO has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 73.01. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 72.47, a Stop Loss order could be placed below this zone.

Trading breakout setups.

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

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.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

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.