Stock of the Day: Coca-Cola
23 June 2025
In today’s stock of the day, let’s take a closer look at Coca-Cola (KO), where a rare but highly reliable technical pattern has emerged — a diamond formation. This pattern, marked clearly with blue boundaries on the chart, is known for signaling either a trend continuation or a trend reversal, depending on the direction of the breakout.
In Coca-Cola’s case, the breakout occurred last week and decisively to the downside. That confirms the diamond as a reversal pattern, suggesting that the recent bullish phase is now over, and the stock is setting up for further declines. This move activates a proper sell signal on the chart.
Of course, technical analysis always leaves room for alternative scenarios. If the price were to reverse sharply and re-enter the boundaries of the diamond, the bearish signal would be invalidated. But given the strength and clarity of the current breakout, the chances of that happening seem quite limited for now.