The Coca-Cola Co. stock (NYSE: KO) traded higher last week, after hitting support at 57.20, while yesterday, it got closer to the peak of December 17th, at 58.95. Overall, the stock stays above the upside support line taken from the low of December 1st, and thus we would expect investors to continue climbing higher.
A clear and decisive break above the 58.95 hurdle will take the stock into territories last seen in February 2020. The next stop may be near the psychological round number of 60.00, which is slightly below the peak of February 16th of that year, at 60.13, which also marks the stock’s record high. If market participants are not willing to stop there, the they will enter uncharted waters, with their next stop perhaps being at 61.00.
Shifting attention to our short-term oscillators, we see that the RSI lies slightly below 70, but continues to point up, while the MACD, already positive, has just poked its nose above its trigger line. Both indicators detect upside speed and support the notion for this stock to continue drifting north.
The short-term outlook could turn bearish if we see a dip below 57.20. The stock will not only be below the aforementioned upside line, but it will also confirm a forthcoming lower low. Investors could then allow the slide to extend towards the 56.10 barrier, marked by the inside swing high of November 23rd, or the 55.40 zone, marked by the inside swing high of December 7th. If they are not interest to enter the action near that zone either, then we could see the fall extending towards the 54.30 barrier, marked by the low of December 6th.
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