Stock of the day: Coca-Cola

By Tomasz Wisniewski |

Published: June 24, 2022

Stock of the day: Coca-Cola

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In the current, falling market, it’s not really common to find an asset climbing higher. There are some of course, but you won’t find them that easily. In today’s analysis, I’d like to show you one of those rare assets – The Coca-Cola Company!

The reason I’m bullish on KO is that we have a false breakout pattern (green). A false breakout is to the downside and the one coming from a Head and Shoulders pattern (yellow).

Last week, the price managed to break the neckline (black) of this formation, which in theory brought us a sell signal. Traders didn’t follow that signal though. Instead of a drop, the price reversed, creating a false breakout mentioned above.

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