Stock of the Day: Coca-Cola

In today’s Stock of the Day, we’re focusing on Coca-Cola (KO), which is set to report earnings before the market opens. The setup on the chart makes the timing especially compelling.

For the past several weeks, Coca-Cola has been trading sideways, forming a symmetrical triangle pattern marked with red lines. This kind of consolidation often signals that a major move is coming, and with earnings on deck, that move may begin today.

Technically, the price is stuck dead center in the triangle — typically the worst place to trade, as direction remains unclear and risk is elevated. But that’s exactly what makes this such a high-alert setup: the range is tight, momentum is low, and a breakout is imminent.

• A break below the lower red boundary would trigger a sell signal, pointing toward deeper downside.

• A break above the upper red boundary would indicate a buy signal, likely triggering a bullish move backed by strong earnings.

The triangle won’t hold much longer. With today’s earnings acting as the catalyst, traders should be ready for volatility and a potential technical shift.