Coca-Cola (NYSE: KO) is a global company that produces and sells non-alcoholic drinks. It has different segments based on regions, such as Europe, the Middle East and Africa, Latin America, North America, and Asia Pacific. It also has segments for Global Ventures and Bottling Investments. Coca-Cola was founded in 1886 by Asa Griggs Candler in Atlanta, GA.
Coca-Cola’s share price currently trades at $60.71, declining 1.51% in the last trading session. KO stock holds a market cap of $262.53 Billion. It has a total of 4.3 Billion shares outstanding. The PE ratio for the stock is 25.38. The price-to-sales ratio of the stock is 6.20.
KO stock derivatives data states that the current Implied volatility in the market is 14.08%, with an increment of 0.41% in the last trading session. It has a total of 788.8K open interest contracts as of now. The PUT/CALL ratio is 0.84 indicating a mild bullish sentiment in the market as per the data.
KO Stock Price Prediction Using Price Action Strategy
KO share price analysis reveals that the stock price has risen since July 2023, after bottoming out, followed by a neckline breakout. The price gained nearly 6% in July 2023, showing a pre-result effect.
However, the price hiked nearly 2% on the result but was rejected by an upper trendline and detained.
the disclosure of results halted the momentum of the ongoing trend, followed by a profit booking, thus dragging the price down by 4% in the past 4 days.
Now that the stock has shown profit-booking post the disclosure of the results, It may continue to decline until it faces some strong support at the lower levels. Also, if the price is above the support, it may surge higher.
However, if the price cannot find buyers at the lower levels, the profit booking may lead to a trend reversal.
KO Share Price Forecast from Indicators’ point of view
As per the EMA analysis, the KO stock price is trading below both the 50 and 200 EMA showing bearish sentiment in the long and short term.
At the time of publishing, the RSI value of the KO share price is 42.67, and that of the SMA line is 57.27. RSI has broken down the SMA line indicating the continuation of the profit booking.
Conclusion
KO stock price prediction concludes that KO stock price has been rising since July 2023 but faced resistance from an upper trendline after the results. The price dropped by 4% in the past 4 days due to profit booking. The price may continue falling or returning depending on the support level. The indicators are signaling the continuation of the profit booking in the stock at the current moment.
Technical Levels
- Support levels: $59.19 and $57.47.
- Resistance levels: $60.96 and $61.73.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/08/07/ko-stock-price-prediction-can-profit-booking-reverse-the-trend/