After having a great run at the end of October/beginning of November, and also at the end of January/beginning of February, the Coca-Cola Company stock (NYSE: KO) took a dive and fell below its long-term upside support line taken from the low of May last year. The stock tried to push back up again and after sequence of ups and downs, the price found refuge near the 200 EMA. For now, we remain bearish in the short run, especially if one of our key support areas gets broken.
A drop below the 46.03-dollar price tag, marked by the low of April 3rd, could allow KO to make its way to the 45.16 hurdle, which is the low of March 15th. We could see the stock rebounding a bit from there, but if its not able to get back above the 46.03 obstacle, or even the 200 EMA, another potential decline could be in the works. This is when we may target the 45.16 obstacle again, a break of which might bring the share price to the area between the 44.42 and 44.61 levels, marked by the lows of February 27th and March 8th respectively.
On the other hand, for the Coca-Cola stock to attract more investor interest, it would need to get back, not only above the aforementioned upside support line, but also above the 48.29 barrier, which marks the peak of January 23rd. That’s when it could become really exciting for investors, as such a break may increase the chances for KO to travel further north, bypassing the 48.77 obstacle and potentially hitting the 49.46 zone, marked by the high of February 4th. We may see a small correction back down from there, but if that move is not able to push the stock back below the previously-mentioned upside line, investors may once again step in and lead the stock higher and potentially targeting the 49.93 level, marked by the highest point of February.
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