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.
The The Coca-Cola Co (NYSE:KO) rose $0.15 (+0.37%) in premarket trading Monday. Year-to-date, KO has declined -1.74%, versus a 3.77% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of AfraidToTrade.com.