Is This Right Time To Buy KO Stock?

The KO stock price started to surge on 10 July and continued its journey toward the annual high but the move was halted near $63. The stock price began its bullish journey from the low of $59.30 and was successful in forming a high of $63.27.

After the release of the quarter 2 financial results, the price took a downturn and started to retrace. Currently, coca cola stock price is stuck in a narrow consolidation zone ranging between $60.70 and $61.40. The price has been consolidating in lower time frames since the start of August.

The previous candle closed as a bearish candle. If the price can break below $60.70 level, it might melt toward the major support level of $59.30. On the other hand, if bulls take control and push the price above $61.40, there is a chance that the price might head toward the recent high of $63.27.

Q2 Report Analysis Of Coca Cola Company

The consensus estimated the revenue to be $11.742 Billion while the company reported a revenue of $11.964 Billion, a surprise of $224.33 Million (1.91%). The earning per share was estimated to be $0.721 while it turned to be $0.78, a surprise of $0.059 (8.11%). The net income was $2.88 Billion.

Monica Howard Douglas, senior vice president and general counsel of the Coca-Cola company sold 21,074 shares of KO stock worth $1,283,449. Organic revenue rose 11% from the prior-year quarter.

In the reported quarter, the price/mix rose by 10%, and concentrate sales increased by 1% year over year. Management has also lifted the guidance for 2023. It expects organic revenue growth of 8%-9% for 2023 compared with the 7-8% growth anticipated earlier.

Will KO Stock Sustain Above $60?

The stock price has dropped below all the major exponential moving averages, implying bearish momentum. Chaikin money flow score has also dropped below the 0 mark and traded at -0.09 indicating weakness in the market and capital outflow.

The relative strength index has also crossed the neutral mark (50) negatively and stands at 45.23, suggesting a rise in the participation of bears. The Bollinger bands have contracted slightly indicating a decrease in volatility. KO stock price is facing rejection from the 20-day simple moving average and might toward the lower band.

Conclusion

The market structure and price action of coca cola company has turned bearish after facing rejection near $63. Technical parameters suggest that there is a rise in seller participation.

Technical levels

Major support: $59.30 and $58.10

Major resistance: $63.10 and $64.25

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing