Coca Cola is a household name and a company many investors may be interested in trading and it is potentially on the verge of breaking out. On the weekly chart we can see that price has bounced off the 50 simple moving average where it found support. The sellers were unable to gain control and the buyers forced price to head even higher. The 200 simple moving average on the daily chart (not shown) was also used as a support area.
Price trended well from 2016 to 2017 so if a breakout does occur then we may see a nice trend follow as it did in the past. The consolidation area which price is currently held within has lasted for over 5 months so we shouldn't be too quick to enter a trade if we do see a breakout. Let price confirm that it wants to stay out of the consolidation area and then look for trading opportunities.
As last week was bullish it will be interesting to see how the coming week will perform.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!
@dh001, Appreciate the feedback. We like to keep our trading as simple as possible. Waiting for breakouts from consolidation are a key part of our trading. Have you been trading long?