Grab a Coke and some stock while you are at it

• Posted by Greg Harmon
• on December 17th, 2015

I’ve seen these polar bear Coca Cola ($KO) ads for years now and although they are cute, I have no idea why someone thought this would sell more Coke. I guess that is why I am not in advertising. I would much rather look at a chart of the stock price as a reason to buy Coke. Oh, not to drink, but as an investment.

The chart below shows that the stock price spent the first 7 months of the year pulling back from a double top made at 45 in 2014. This ended when it spike down with the market on August 24th, and it has trended higher since. In late October it spiked up to the January highs and then pulled back to the prior support and resistance zone just under 42.

Now the stock price is pressing against that resistance again at 43.80 and it has some support from the momentum indicators to continue higher. It also recently printed a bullish Golden Cross, where the 50 day SMA crosses up through the 200 day SMA. A break over 43.80 has only the double top at 45 in the way before a new all-time high.

With a better than 3% dividend yield, maybe it is time for you to grab a Coke and smile.

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