Good technical signals and a possible breakout for COCA-COLA CO/THE.

Our stock screener has spotted COCA-COLA CO/THE (NYSE:KO) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:KO.

Technical analysis of NYSE:KO

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Overall KO gets a technical rating of 7 out of 10. Although KO is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• KO is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so KO slightly outperforms the market at the moment.
• When comparing the yearly performance of all stocks, we notice that KO is one of the better performing stocks in the market, outperforming 87% of all stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• KO is part of the Beverages industry. There are 38 other stocks in this industry, KO did better than 65% of them.
• In the last month KO has a been trading in a tight range between 62.67 and 65.47.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:KO currently has a 8 as setup rating:

KO has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 64.08, a Stop Loss order could be placed below this zone.

How to trade NYSE:KO?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the 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.

More breakout setups can be found in our Breakout analyzer.