Will COCA-COLA CO/THE Break Out? A Technical Analysis Perspective.

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.

Analyzing the Technical Aspects

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Taking everything into account, KO scores 9 out of 10 in our technical rating. Both in the recent history as in the last year, KO has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• Looking at the yearly performance, KO did better than 75% of all other stocks. On top of that, KO also shows a nice and consistent pattern of rising prices.
• KO is part of the Beverages industry. There are 32 other stocks in this industry. KO outperforms 87% of them.
• KO is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so KO is lagging the market slightly.
• In the last month KO has a been trading in a tight range between 70.38 and 73.53.
• Volume is considerably higher in the last couple of days.

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

How do we evaluate the setup for NYSE:KO?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:KO this score is currently 9:

KO has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 71.47. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 71.09, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NYSE:KO

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Of course, there are many ways to trade or not trade NYSE:KO and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.