Stock of the day: Coca-Cola
12 August 2024
This week, and possibly even today, we might see some movement in Coca-Cola's stock, which has been in a sideways trend for the past few days. The price action has formed a pennant pattern, marked by black lines, with the stock moving neither up nor down, but rather drifting sideways in a flat manner. However, looking at the broader trend, Coca-Cola has been on an upward trajectory, consistently making higher highs and higher lows, supported by a red uptrend line.
So, how should we approach trading this setup? If the price bounces off the red uptrend line and breaks through the upper boundary of the pennant, it could signal a buying opportunity. Conversely, if the price breaks below the red support line and the lower boundary of the pennant, it would likely indicate a selling opportunity. The key question is which direction the stock will take, and traders will be watching closely to see which scenario unfolds.