Rotating out of defensive, bear trap seen on CokeNYSE:KO had enjoyed a strong upside since Jan 2025, netting a gain of more than 20%. However, recent price action has suggest that Coke is looking at a near-term correction after a bearish morning star was see forming at 72.00 psychological resistance. Furthermore, the stock has formed a bull trap where it fails to close above 3% after breaking 72.00.
MACD remain bullish on the longer-term horizon but stochastic oscillator has shown an overbought signal and forms a bearish divergence. 23-period ROC also display similar outlook. Volume has picked up and is likely going to see further downside pressure.
Key support to watch are at 68, 65 and 63