Stock of the day: Coca-Cola
01 July 2024
Today, let's take a closer look at Coca-Cola, which is nearing its long-term highs. Despite this proximity, a definitive buy signal isn't apparent yet. In June, Coca-Cola's price tested the key resistance at $64.3, marked by the upper black line, and subsequently bounced off. This suggests the possibility of a double top formation, indicating a bearish sentiment.
Regarding support levels, the lower black line, previously a resistance in February and March and later in April and May, now acts as a significant support. The price bouncing off the upper black line points towards a potential decline to this lower support level, making the mid-term sentiment bearish.
However, if the price breaks above the upper black resistance, it will signal a strong buy opportunity. At the moment, a bearish correction seems slightly more probable, but traders should watch closely to see which direction Coca-Cola will take.