KO Long-term outlook
KO reported better than expected earnings on February with earnings per share of $0.37 vs. consensus $0.36, and revenue came out at $9.4 billion vs. expected $9.1 billion. The company tried its best to boost sales in non-soda product line which is a good decision. The shift in the world trend into more health conscious demand KO who offer the sugary drink to change.
Challenge persist but it seems KO will manage it in several years.
The monthly chart of KO shows the bull persistence to hold the price above the long-term trendline. There is no break, but unfortunately no strong bullish indication also. The price might move sideway and stick near the trendline for several months. The longer it stick near the trendline, the higher the chance for a break to happen.
Weekly chart continues the shares bottoming out process, and there is promising price action near WSMA 200. If the price could jump away from the support level, traders might see KO start a new bullish trend.
KO has a big obstacle upside on the daily chart. The price is hovering just below the daily SMA 200 which might hold the price from moving up and reverse it to the downside. Traders must be careful to manage their long position near the resistance. If the price manages to close above the averages, it might sign trend reversal.
A long position needs to wait for a break above daily SMA 200 and re-test of it.
A short position could be taken when the price touch daily SMA 200.