Stock of the day: Coca-Cola

By Tomasz Wisniewski|

Published: July 29 2022, 09:41 GMT+0

Stock of the day: Coca-Cola

At the end of the month, we’re analysing Coca-Cola, which was first mentioned in July. Back then, we were rather bullish saying:

“Now, the price is back above the neckline, which switches the sentiment back to positive. A buy signal is on, as long as the price stays above June lows. The price creating a new one will be a negative signal, but currently the chances of that are happening are rather limited.”

That was a good call as today the price is of course higher. It was not that obvious from the very beginning though. The stock first hit new highs but then entered the correction stage. The correction ended this week and the earnings report on Tuesday came in handy. EPS and revenue beat expectations and the price of Coca-Cola increased. We’re not talking about the price in shop due to inflation.

Yesterday, buyers pushed the price even higher and that was very significant from a technical point of view – Coca-Cola managed to break the upper line of the long-term symmetric triangle pattern (blue). The price closing the day above that resistance gives us a strong buy signal and that’s our current view.