The Coca-Cola Co. stock (NYSE: KO) has been in a sliding mode since August 20th, when it hit resistance at 57.00. At the time of writing, it is testing the upside support line drawn from the low January 29th, and it remains to see whether it will fall below it or not. Despite that the stock is still above that line, the fact that it is testing it now, combined with the fact that our oscillators detect downside momentum, force us to adopt a neutral stance.
If indeed the stock falls below that lien, we could see a slide towards the 54.55 area, but a break below that zone is the move that would make us consider a short-term bearish reversal. This could open the way towards the low of July 6th, at 53.55, the break of which could set the stage for the 52.50 area, defined as a support by the lows of March 31st, April 1st, and April 5th. If investors are not willing to buy near that price either, then we could see the fall extending towards the 51.20 territory, marked by the low of March 25th.
Shifting attention to our short-term oscillators, we see that the RSI lies below 30 and points down, while the MACD runs below both its zero and trigger lines, pointing down as well. Both indicators detect strong downside speed and suggest that it may not take too long before the share price falls below the aforementioned upside support line.
Now, in order to get confided that the uptrend has regained fuel, we would like to see a recovery above 57.00, the peak of August 20th. This could initially target the highs of July 21st and 27th, at 57.55, the break of which would take the stock into territories last tested in March 2020. The next resistance may be the high of March 5th, 2020, which if doesn’t hold could pave the way towards the peak of the day before, at 59.00.
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