Coca Cola has done little so far this year, but some traders may see potential for movement to the downside in coming weeks.
The first pattern on today’s chart is the series of lower highs since the last quarterly report on July 26. KO has recently tried to hold roughly $60.50, which has produced a descending triangle. That’s potentially bearish.
Second, MACD has been steadily falling at the same time.
Third, the 50-day simple moving average (SMA) had a “death cross” below the 200-day SMA in late July.
The stock also made a lower high in July versus April. That’s the opposite of the S&P 500, potentially showing a lack of relative strength versus the broader market.
Now let’s take a longer-term view with the weekly chart. KO made an all-time high over a year ago with limited follow-through. Also notice the double-top at the peaks of December and April. Average True Range has narrowed as well, which could mean prices are preparing for a bigger move.
Finally, consumer staples have lagged as interest rates increase and the economy remains strong.
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The first pattern on today’s chart is the series of lower highs since the last quarterly report on July 26. KO has recently tried to hold roughly $60.50, which has produced a descending triangle. That’s potentially bearish.
Second, MACD has been steadily falling at the same time.
Third, the 50-day simple moving average (SMA) had a “death cross” below the 200-day SMA in late July.
The stock also made a lower high in July versus April. That’s the opposite of the S&P 500, potentially showing a lack of relative strength versus the broader market.
Now let’s take a longer-term view with the weekly chart. KO made an all-time high over a year ago with limited follow-through. Also notice the double-top at the peaks of December and April. Average True Range has narrowed as well, which could mean prices are preparing for a bigger move.
Finally, consumer staples have lagged as interest rates increase and the economy remains strong.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing in cryptocurrencies involves significant risks. Please click here for TradeStation Crypto’s risk disclosures on investing and trading in cryptocurrencies.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.