Technical Analysis of Coca-Cola (KO)
The stock (
KO) is currently in a retracement phase from its all-time highs reached in September 2024, having momentarily paused at previous relative highs.
Given Coca-Cola’s long-term uptrend, we can identify several key support levels where the retracement may halt and resume its upward trajectory:
SUP 1: The first support area could be the current level, marked as SUP 1.
SUP 2: The second area is around $64, labeled as SUP 2. Analyzing the Volume Profile, we notice significantly higher volume levels here.
POC: Just below SUP 2, we find the POC (Point of Control) area in the Volume Profile, located around $60.
SUP 3: Another support level, marked as SUP 3, is around $57.
In the worst-case scenario, a drop down to SUP 3 would represent a drawdown of around 20%. Historically, Coca-Cola has seen similar drawdowns of 15%-20% and even as much as 40% at times.
The final potential support area is between $54-$53, corresponding to a secondary peak in the Volume Profile and an area where the stock has previously found resistance. This scenario would reflect a drawdown of about 30%
An additional note: the SUP 2 and POC levels align precisely with the 0.382 and 0.618 levels of the Fibonacci Retracement indicator.
KO) is currently in a retracement phase from its all-time highs reached in September 2024, having momentarily paused at previous relative highs.Given Coca-Cola’s long-term uptrend, we can identify several key support levels where the retracement may halt and resume its upward trajectory:
SUP 1: The first support area could be the current level, marked as SUP 1.
SUP 2: The second area is around $64, labeled as SUP 2. Analyzing the Volume Profile, we notice significantly higher volume levels here.
POC: Just below SUP 2, we find the POC (Point of Control) area in the Volume Profile, located around $60.
SUP 3: Another support level, marked as SUP 3, is around $57.
In the worst-case scenario, a drop down to SUP 3 would represent a drawdown of around 20%. Historically, Coca-Cola has seen similar drawdowns of 15%-20% and even as much as 40% at times.
The final potential support area is between $54-$53, corresponding to a secondary peak in the Volume Profile and an area where the stock has previously found resistance. This scenario would reflect a drawdown of about 30%
An additional note: the SUP 2 and POC levels align precisely with the 0.382 and 0.618 levels of the Fibonacci Retracement indicator.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.