Coca-Cola Stock Keeps Powering Higher Toward Resistance

Coca-Cola Co KO shares were trading higher Wednesday as the stock continues to trade up along the higher low trendline. Coca-Cola stock has traded along a higher low trendline for years and is continuously able to break its resistance levels.

Coca Cola was up 1.12% at $56.30 at last check.

Coca Cola Daily Chart Analysis

• The stock has been forming higher lows for a long time and is reaching a point of resistance where it was unable to break in the past.
• The $58 price level is an area Coca-Cola was unable to break above a couple times in the past. This area may find some resistance, as the stock has struggled to cross above it. The stock has been able to find support near the higher low trendline many times in the past and may continue to do so in the future.
• The stock trades above both the 50-day moving average (green), and the 200-day moving average (blue), indicating the stock is likely facing a period of bullish sentiment.
• Each of these moving averages may hold as a potential area of support in the future.
• The Relative Strength Index (RSI) has been moving sideways for a while and currently sits at 50 on the indicator. This means the stock is seeing relatively equal buying and selling pressure in recent weeks. 

What’s Next For Coca-Cola?

Bullish traders are looking to see the stock continue to trade above the higher low trendline and continue to break above the resistance levels it forms in the future.

Bulls are in control and want to see the stock stay above the moving averages to keep a bullish sentiment.

Bears are looking for the stock to fall below the higher low trendline and possibly cause the beginning of a downtrend. Bears are also looking to see the price break below the moving averages for the sentiment to possibly change to bearish.