In today’s Stock of the Day, we’re focusing on Coca-Cola (KO), which is set to report earnings before the market opens. The setup on the chart makes the timing especially compelling.
For the past several weeks, Coca-Cola has been trading sideways, forming a symmetrical triangle pattern marked with red lines. This kind of consolidation often signals that a major move is coming, and with earnings on deck, that move may begin today.
Technically, the price is stuck dead center in the triangle — typically the worst place to trade, as direction remains unclear and risk is elevated. But that’s exactly what makes this such a high-alert setup: the range is tight, momentum is low, and a breakout is imminent.
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A break below the lower red boundary would trigger a sell signal, pointing toward deeper downside.
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A break above the upper red boundary would indicate a buy signal, likely triggering a bullish move backed by strong earnings.
The triangle won’t hold much longer. With today’s earnings acting as the catalyst, traders should be ready for volatility and a potential technical shift.