KO Long-term outlook

KO share prices smoothly higher without any significant pullback. Though August is a bearish month for the share prices, analyst and investors grow optimistic on company future. There is a rumor that the company is planning for Monster Beverages (NASDAQ: MNST). If the buyout happens, it might become right company decision as the market currently shifts to a healthier choice.

On the fundamental note, KO second quarter revenue declined 16% yoy on the healthy trend and sugary drink tax loom, the company, need to diversify more.

Click here to see KO May analysis

New Month

Monthly chart

In May, we mention about the possibility of KO to continue higher and challenge previous year high if the share price close above Fibonacci levels. Now, the share prices are just $1 shy of the high. There is nothing to hold the bull from achieving the high, and the bear might want to watch sideline for now.

Weekly chart

KO on the weekly chart shows no weakness yet as the share prices attempt to move above $46.00. Not much to analyze here and there is a possible break above $46.00 soon.

Daily chart

Bullish channel on the daily chart is respected, and KO bull is riding the share prices to the top using this channel. The share prices currently show possible ascending triangle pattern which is bullish. Traders could look area between $46.00 – $46.40 for the triangle top which will become buy area if broken upside.

Trade plan

A long position could be taken from the bottom of the channel on daily chart. Another long position if the share prices break above $46.00 – $46.40 and successful to bounce in the retest.

A short position needs to wait until breakout below the daily channel.