The Coca-Cola Co. (KO) was last reviewed in early June, where I wrote that "The correction in the price of KO may be over. Aggressive traders could probe the long side of KO here and toward $42.50 risking below $41.50. Add on a rally above $45 if it develops."
Looking at an updated chart of KO today I can see that traders should be long and profitable. Let's check some updated charts to revise our risk point and price targets.
In this daily bar chart of KO, below, we can see that KO has rallied from June 5th and spent most of July above the 200-day moving average line.
The shorter 50-day moving average line is crossing above the 200-day line for a bullish golden cross buy signal.
The daily On-Balance-Volume (OBV) line continues to improve from its May low. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profits sell signal.
In this weekly bar chart of KO we have a number of bullish signals. Prices are above the flat 40-week moving average line.
The weekly OBV line has been strong the past three months and is up at a new three-year high.
The weekly MACD oscillator has crossed above the zero line for an outright go long signal.
In this Point and Figure chart of KO, below, we can see a $56.56 price target. A trade at $48.06 will be bullish.
Bottom line strategy: Traders who followed our recommendation in June to go long should hold and raise sell stop protection to just below $44.50. Add to longs above $47 looking for gains to the $56 area in the next few months.