Tuesday, June 18, 2019
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Technical Analysis – Coca-Cola stock in the long-term is still bullish

Coca-Cola 13/12/18 | EconAlerts

Coca-Cola stock takes a pause after surging to record highs.

Coca-Cola stock price hit an all-time high of 50.74 last month before stabilising slightly lower and is set to finish higher by 7.0% in the year. Yet, with the 20-day simple moving average losing steam, the upward pattern might not extend further, while momentum indicators are also not as positive as before, pointing to weaker trading sessions in the near term; the MACD keeps falling below its red signal line and towards zero, whilst the RSI has reversed back to the downside to test its 50 neutral threshold.

Should the market come under new selling pressure, a barrier is expected to appear around 48.60, where the price strongly pulled back in January and found support recently. Breaking that key obstacle could see more downside towards 47.44, the peak on November 2017, though only a decisive close below 46.85 would confirm the end of the bullish phase.

On the flip side, if the price bounces up, immediate resistance could come between 50 and 50.74. In the event of steeper increases, the bulls may pierce the 50.74 top and enter uncharted region, turning the overall outlook extremely positive. In this case, traders could target the 51 and 52 marks which could be of psychological importance.

Summarising, in the short-term Coca-Cola stock is painting a neutral picture, while overall the market is significantly bullish.


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This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Source: XM

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