Leading beverage manufacturer, Coca Cola Co (KO), has been under sharp selling pressure since December 31st, 2021. On that day, the stock traded as high as $54.93 a share. Today, shares of Coca Cola Co (KO) are trading around the $50.00 level. This current price area could be short term support for the stock, but the weekly chart suggests lower prices are ahead for the beverage giant. You see, Coca Cola Co (KO) stock has given up 7 weeks of gains over the past 4 trading days. This is what we call an outside down week for the stock.
Traders should now watch the $45.00 level for very solid chart support. This important support area is where the stock broke out in July 2020. Often, stock will be defended by the institutional crowd around prior breakout levels. This level is also a major retrace area adding even more strength to the $45.00 level when tested. I will look to trade Coca Cola Co (KO) stock on the long side around this key $45.00 price range.
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