Coca-Cola Co. stayed in a long-term up-trend for several years (solid line). The stock then settled in an extremely bullish behaviour pattern known as a "W" formation (dotted lines). The recent rise to $44.87 (U.S.) signalled the breakout from the bullish "W" pattern and confirmed renewed investor sentiment (A). Current prices should provide a good entry level.
Technical indicators including the 40-week moving average (40wMA) confirm the bullish status. Only a sustained decline below $40.50-41 would be negative. Point & Figure measurements provide targets of $54 and $59. Higher targets are visible.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.
