Coca-Cola stock analysis: will it hit a new all-time high?

Coca-Cola could continue its uptrend and retest the all-time high at $60.11


Coca-Cola (NYSE: KO) reported second-quarter earnings on 21 July that surpassed estimates from analysts polled by Refinitiv. Net sales soared by 42% to $10.13bn beating expectations of $9.32bn. Earnings per share, which came in at  68 cents, also topped analysts’ expectations of 56 cents.

Coca-Cola has raised its full-year guidance and now anticipates organic revenue growth of 12% to 14%, up on its earlier projection of high-single-digit growth. The company also expects adjusted earnings per share to grow at 13% to 15%, up from its previous growth prediction of high single digits to low double digits.

Surging Delta variant infections among the unvaccinated have raised fears of possible lockdowns, however. Coca-Cola’s chief financial officer, John Murphy, was keen to try to reassure investors, saying that the raised sales forecast catered for some possible impact from the new COVID-19 threat.

Garrett Nelson, a senior equity analyst at CFRA Research, remained cautious, telling Reuters: “If we have a re-closing of venues or capacity restrictions re-implemented, Coke sales are going to suffer. For that reason, we view [Coca-Cola] as the riskier name to Pepsi.

The question is after stellar results, will Coca-Cola stock go up or down? Read our KO stock analysis to find out more.

Coca-Cola share price technical analysis: weekly chart

Coca-Cola weekly share price

Coca-Cola’s share price recovered sharply from its March 2020 low of $36.25 and rose to $57.64 by 21 July. That represents a 59% rally in about 16 months.

Both moving averages are sloping up and the relative strength index (RSI) is in the positive zone, indicating an advantage to buyers. If bulls sustain the price above $56.44, the stock could continue its northward march to $60.11 where the bears are likely to mount stiff resistance.

If bulls do not give up much ground from $60.11, the possibility of a break above the resistance increases. If that happens, the stock could resume its upwards trend toward the next target objective of $72.

The first sign of weakness would be a breakdown and close below the 50-week simple moving average (SMA). That could open the doors to a possible decline to $48. 

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Coca-Cola share price technical analysis: daily chart

Coca-Cola daily share price

Coca-Cola’s share price has been facing stiff resistance at the $56.50 mark. Though bulls pushed the price above this resistance point on 21 July, the long wick on the candlestick suggests profit-booking at higher levels.

A minor positive is that bulls have not allowed the price to dip below the 20-day exponential moving average (EMA) in the past few days, however. This indicates the sentiment is positive and buyers are accumulating on dips.

The bulls will again try to clear the overhead hurdle at $56.50. If they manage to do it, the upwards trend could resume. The next stop would be at $60.11, where the bears are likely to resist strongly.

If the $56.50 level is conquered, however, it will act as a support during future declines. If the level holds, the path of least resistance will remain to the upside.

Contrary to this assumption, if the price turns down and breaks below $55, short-term traders could book profits, pulling the price down to $53.50. 

A bounce off this level would keep the stock range-bound between $53.50 and $56.50 for a few more days. The bears may enjoy the upper hand if the stock plummets below $53.50.

Coca-Cola stock: buy or sell at these levels?

The Coca-Cola stock price is in an upwards trend but is facing stiff resistance near $56.50. If the stock closes above this level for three consecutive days, the bulls may challenge the all-time high of $60.11. This bullish view will be invalidated in the short term, however, if the stock closes below $55. 

The views expressed in this article are those of the writer and do not represent trading advice. Always remember your decision to trade depends on your attitude to risk, your expertise in this market, the spread of your investment portfolio and how comfortable you feel about losing money.

Trade Coca-Cola – KO stock price

Daily change
Low: 64.67
High: 65.14

KO price history

Date Close Change Change(%) Open High Low
Aug 16, 2022 64.96 0.65 1.01% 64.31 65.17 64.29
Aug 15, 2022 64.30 0.73 1.15% 63.57 64.64 63.39
Aug 12, 2022 63.60 0.25 0.39% 63.35 63.71 62.96
Aug 11, 2022 63.11 -0.42 -0.66% 63.53 63.94 62.35
Aug 10, 2022 63.06 0.05 0.08% 63.01 63.75 62.76
Aug 9, 2022 62.98 -0.04 -0.06% 63.02 63.26 62.56
Aug 8, 2022 62.93 -0.42 -0.66% 63.35 63.76 62.71
Aug 5, 2022 63.24 -0.38 -0.60% 63.62 63.76 62.56
Aug 4, 2022 62.56 -1.16 -1.82% 63.72 63.97 62.56
Aug 3, 2022 63.86 0.24 0.38% 63.62 64.05 63.06
Aug 2, 2022 63.60 -0.76 -1.18% 64.36 64.56 63.08
Aug 1, 2022 64.37 0.35 0.55% 64.02 64.99 63.93
Jul 29, 2022 64.16 0.29 0.45% 63.87 64.24 63.59
Jul 28, 2022 63.81 0.90 1.43% 62.91 64.20 61.96
Jul 27, 2022 62.91 -0.16 -0.25% 63.07 63.36 61.74
Jul 26, 2022 62.96 1.20 1.94% 61.76 63.75 61.07
Jul 25, 2022 61.46 -0.10 -0.16% 61.56 62.26 61.27
Jul 22, 2022 61.46 0.30 0.49% 61.16 61.82 60.56
Jul 21, 2022 61.22 -0.25 -0.41% 61.47 61.83 60.46
Jul 20, 2022 61.41 -0.86 -1.38% 62.27 62.54 60.96
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