Coca-Cola: Rebound

Coca-Cola has recently posted a high in the upper third of our red Target Zone ($77.63–$82.89) before entering a sell-off. We now view the first leg of this move as complete. The current decline should temporarily lose momentum through a brief rebound. We expect the peak of this recovery to form once again within our red Target Zone ($77.63–$82.89). After that, the downward move should resume and push the stock below the support at $74.71. Alternatively, Coca-Cola could still record a higher high by fully extending our red Target Zone ($77.63–$82.89) up to its upper boundary before the described sell-off begins. A decisive break above the resistance at $82 would confirm this scenario (probability: 35%).