Grab Some Coke (Stock) and a Smile to 90

Another large cap stock with a long history and a decent dividend at 2.90% is breaking out. This time it is the Coca-Cola Company, $KO. Take a look at the daily chart below. It broke above the descending trend line resistance on strong volume on March 12th and has been consolidating at the prior top from September in a bull flag. The break out triggered a price target of 77.80 from the symmetrical triangle with a smaller Measured Move to 72.30 along the way above the current flag.

The Relative Strength Index (RSI) is bullish and holding strong and steady just below 70 while the Moving Average Convergence Divergence (MACD) indicator is positive, both supporting more upside. The weekly chart points to a bubbly story also. It shows consolidation under resistance at 70.40 that has been going on for nearly 7 months after the move higher from 48. Notice that the bull flag that launched that run higher was also about 7 months in duration. Also that the move to the 68 -70 area was about a 20 point move and followed the 20 point move from the 2009 low to

the high. With the RSI making a new high, the MACD turning positive and volume increasing on this latest move higher, it has a shot at breaking through that resistance and moving higher with a Measured Move to the 88 – 90 area. So look for the break then grab a Coke and Smile!

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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