Coca-Cola KO-N rallied from $36.27 in March 2020 to $67.20 in April 2022 (A-B) above a rising trendline (dotted line) and above the rising 40-week Moving Average (40wMA). The stock fell below these indicators later in 2022 and then traded below a falling trendline for about two years (dashed line). Coca-Cola rallied above this line earlier this year to a high of $73.53 (C) and the Average curled upward to signal the start of a new uptrend (solid line).
Behaviour indicators including the rising 40wMA and the rising trendline confirm the bullish status. Coca-Cola is overbought and trading far above the Average; a minor correction toward $66-67 would provide a good entry level. Only a sustained decline below $63-64 would be negative.
Point & Figure measurements provide targets of $78 and $84. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com