Coca Cola (NYSE: KO) Long Term Technical Analysis June 2019

KO Long-term outlook

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Innovations are the key factor for Coca-Cola brands to survive in the current market. The company previously targetted by sugar-tax and innovate its line of products. At the current time, the company has not only Coke as its products. We could see hot drinks, Kombucha, smoothies, orange juice and many other lines of products owned by the company.

The innovation success reflected in KO share prices movement. The share prices raised from as low as $36.56 in 2015 to trade at $51.30 at the current time. It seems the company will continue to have strong growth and experience further upside in the share prices.

New Month

Monthly chart

We could easily spot a bullish channel on KO monthly chart. The share prices moving upward smoothly inside the channel and there is no breakout yet. At the current time, the share prices traded at the top of the channel. Will a rejection happens and KO starts moving lower to test the bottom of the channel?

Traders might want to wait for a bearish correction to happen to enter long positions. Short positions must be treated as short-term trade as the share prices overall trend is bullish.

Weekly chart

KO on the weekly chart might have reached the reversal point where it might turn lower. If the share prices turn lower then traders could watch the level around $50.00 for possible long positions. On the lower side, the level around $46.60 and the bottom trendline are ideal levels to look for long positions. Short positions could be considered but must be treated as a counter-trend trade.

Daily chart

The trend is bullish and no confirmation yet for bearish positions. KO hanging near the top and currently target 23.6% Fibonacci retracement level. 50% Retracement level is the ideal level to look for long positions. On the upside, traders could consider $50.00 for short-term long positions.

Trade plan

A long position might need to wait until the share prices fall further toward $50.00 or 50% Fibonacci Retracement level on the daily chart.

A short position from the current level with $50.00 as the target could be considered.

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