Technical Analysis – Coca Cola stock cautiously positive, eyes record highs

Marios Hadjikyriacos, XM Investment Research Desk

Coca Cola’s stock has been in recovery mode since late December, recently crossing back above its 50-day simple moving average (SMA). The medium-term picture currently seems cautiously positive, and for it to shift to clearly positive, it would require a decisive break above the all-time high of 50.74.

Short-term oscillators support a somewhat positive outlook. The RSI is near its 70 zone, but seems to have flatlined, while the MACD remains firmly above its red trigger line.

Further advances in the market could meet initial resistance near the psychological 50.0 handle, which also halted the advance on December 12. An upside break could open the way for the December 4 peak at 50.50, with another move above that eyeing the record high of 50.74. Even higher, resistance may be found near the round figures, starting with 51.0 and then 52.0.

On the other hand, a pullback in the stock may stall first near the 48.30 zone, marked by the peak of January 23. The 50-day SMA at 48.13 is also part of this area. If the bears pierce below that, it would turn the picture to a more neutral one, with the next obstacle being the January 28 low of 46.90.

In short, a break above 50.74 would strengthen the bullish picture, whereas a move back below the 50-day SMA would be a signal for caution.