The technical picture of the Coca-Cola stock (NYSE: KO) on our daily chart shows that after hitting an all-time high in the beginning of March, near the 63-dollar mark, the share price is now seen drifting lower, together with the broader equity market. The stock is trading below a short-term downside resistance line drawn from the high of March 4th, however recently it got halted near the 58.58 zone, which is the low of January 24th. Although there is a good indication that another move lower might still be possible, we would prefer to wait for a break below that support zone first.
Eventually, a break below the 58.58 hurdle will confirm a forthcoming lower low, potentially opening the door for a move to the 57.20 territory, marked by the low of December 20th. KO may find some support around there and even rebound somewhat from that area. That said, if the share price struggles to overcome the aforementioned downside line, another decline could be possible. If that’s the case, the stock may revisit the 57.20 obstacle, a break of which might set the stage for a move to the 56.32 level, marked by the high of December 10th, 2021.
The RSI is currently flat but remains below 50. The MACD is still pointing lower, while running below zero and the trigger line. The two indicators show negative price momentum, which supports the idea of seeing further declines.
Alternatively, if the stock breaks the previously mentioned downside line and then rises above the 60.72 hurdle, marked by the low of March 7th, that may invite more buyers into the arena. KO could travel to the 61.53 obstacle, which may provide a temporary hold-up. However, if the buyers stay strong, they might overcome that obstacle and target the 62.58 level, marked by the high of March 4th.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2022 JFD Group Ltd.