The Coca-Cola Co. stock (NYSE: KO) entered a recovery mode on August 27th, after it hit support near the crossroads of the 55.50 level and the upside support line drawn from the low of January 29th. The recovery was stopped though near the 57.00 level, and then, the stock pulled back. However, as long as the stock stays above the upside support line, we would consider the broader outlook to be positive.
If investors stay interested in that stock, we could see then pushing above the 57.00 barrier soon, something that may pave the way towards the key resistance of 57.55, marked by the highs of July 21st and 27th. They may decide to take a break after testing that key resistance, thereby allowing the stock to correct slightly lower, but if they jump back into the action from above the aforementioned upside line, we could see the recovery extending above the 57.55 zone. Such a break may set the stage for extensions towards the 58.25 zone, marked by the high of March 5th, 2020, the break of which could allow advances towards the peak of the day before, at around 59.00.
Shifting attention to our short-term oscillators, we see that the RSI rebounded from near its 50 line, while the MACD although pointing sideways, remains above both its zero and trigger lines. Both indicators detect relatively positive price momentum and support somewhat the notion for further advances in this stock for the near term.
Now, we will abandon the bullish case upon a dip below the 55.20 barrier, which is marked near the low of July 19th. This may validate the break below the pre-mentioned upside support line taken from the low of January 29th and may initially open the path towards the 54.50 zone, which provided resistance June 25th and July 12th. If investors are still not interested in the stock even at that price, then we may see the fall extending towards the low of July 6th, at 53.55.
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 2021 JFD Group Ltd.