Coca-Cola stock reaches a 2-month high; bullish actions back into play.
Coca-Cola stock price advanced above the Ichimoku cloud over the last couple of trading days, challenging a two-month high around the 47.50 resistance. The MACD oscillator rose above its trigger line in the daily timeframe, while the stochastic is flattening in the overbought territory, suggesting overstretched market.
A failure to overcome the two-month high of 47.50 level could send the price down to the upper surface of the Ichimoku cloud around 47.16. Lower, support could be next found around 46.70 where the 20-day SMA is currently positioned, while a slip below this level and the ascending line near 46.40 could stage a steeper sell-off.
Alternatively, a daily close above 47.50 could open the way towards the 48.27 resistance, taken from the peak on January 23. On top of that, the bulls could test the 49.90 level, where it topped on February 13.
In the short-term picture, the stock price turned positive after the pullback on the four-month low of 44.40. Should the market continue the upward pattern, the outlook may turn brighter.
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