Time for a Longer Timeframe Bounce for Coca Cola KO
Fri, Feb 10, 10:11 AM ET, by Corey Rosenbloom
Let’s see if buyers can take advantage of a long term rising trendline for Coca-Cola (KO) shares. Is it a buy?
Here’s a multi-year weekly chart of KO and the key level right now in play. It’s make or break for the soda king!
I’m highlighting a Linear Regression Line with one Standard Deviation above and beneath the midpoint line.
You can see how price reacted previously at these levels, both reversing down away from them (2012 and 2013) and then up away from it in 2015.
Will 2017 give us another bounce and rally higher off this lower rising line?
That’s what buyers will expect for the next few months – another bullish rally similar to 2015.
Note how price also has traded up away from the highlighted midpoint through the last few years.
As we continue to push forward into 2017, note the potential rally developing up away from $40.00 for KO shares…
and the breakdown reversal that could quickly trigger if the lower support trendline fails for the first time since 2009.
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Corey Rosenbloom, CMT
Afraid to Trade.com
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Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
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