Coca-Cola's Chart Looked Ugly, But Recovered: What's Next?

Coca-Cola Co. KO shares are trading higher after the company reported third-quarter sales growth of 16% year over year. The $10.04 billion figure beat the analyst consensus of $9.75 billion.

Coca-Cola was up 1.75% at $55.43 at press time.

See Also: Why Are Coca-Cola Shares Trading Higher Today?

Coca Cola Daily Chart Analysis

• The stock fell below the higher low trendline in what technical traders call an ascending triangle pattern, but looks to have recovered back above it Wednesday.
• The $58 level is an area where the stock has been unable to break above in the past and may continue to hold as resistance in the future. The higher low trendline is somewhere the stock may find support near 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 seeing bullish sentiment.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has been moving higher the past few weeks and sits at 62. The move higher in the RSI is showing the stock is now seeing more buyers than it is sellers.

What’s Next For Coca-Cola?

Bullish traders are looking to see the stock be able to stay above the higher low trendline and continue to push higher toward resistance. Bulls then want to see the stock break above resistance and hold above the $58 level, causing the stock to see further bullish moves.

Bearish traders want to see the stock fall back below the higher low trendline and begin to hold it as a place of resistance. If the stock were to hold this level as resistance, then it may be ready to see a strong bearish push.