Technical Analysis of Coca-Cola (KO)The stock ( KO ) is currently in a retracement phase from its all-time highs reached in September 2024, having momentarily paused at previous relative highs.
Given Coca-Cola’s long-term uptrend, we can identify several key support levels where the retracement may halt and resume its upward trajectory:
SUP 1 : The first support area could be the current level, marked as SUP 1.
SUP 2 : The second area is around $64, labeled as SUP 2. Analyzing the Volume Profile, we notice significantly higher volume levels here.
POC : Just below SUP 2, we find the POC (Point of Control) area in the Volume Profile, located around $60.
SUP 3 : Another support level, marked as SUP 3, is around $57.
In the worst-case scenario, a drop down to SUP 3 would represent a drawdown of around 20%. Historically, Coca-Cola has seen similar drawdowns of 15%-20% and even as much as 40% at times.
The final potential support area is between $54-$53, corresponding to a secondary peak in the Volume Profile and an area where the stock has previously found resistance. This scenario would reflect a drawdown of about 30%
An additional note: the SUP 2 and POC levels align precisely with the 0.382 and 0.618 levels of the Fibonacci Retracement indicator.
