The Coca-Cola Co ( KO) reported their latest quarterly results Wednesday morning and investors have been encouraged. Let's check out the charts and indicators.
In this daily bar chart of KO, below, I can see that prices have traded sideways since December. The up and down swings on the chart have become narrower and KO is moving closer towards an apex. Prices are above the 50-day moving average line and above the rising 200-day moving average line.
The On-Balance-Volume (OBV) line shows strength from early June. The Moving Average Convergence Divergence (MACD) oscillator is now moving above the zero line for an outright buy signal.
In this weekly Japanese candlestick chart of KO, below, I can see a different perspective on the sideways pattern noted above. Prices have rallied above the rising 40-week moving average line. The OBV line is up from a March low.
The MACD oscillator is right on the zero line so a small rally should be able to generate a buy signal. The lower shadow on a candle in July has my attention and makes me think the path of least resistance will be up.
In this daily Point and Figure chart of KO, below, I can see a potential upside price target in the $76 area. A trade at $65 will refresh the uptrend.
In this weekly Point and Figure chart of KO, below, I can see a $77 price target.
Bottom line strategy: Traders could get a glass and some ice (maybe some rum) and consider going long KO at current levels. Risk to $59.50. The $77 area is my price target for now.
