Coca-Cola Stock Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Coca-Cola stock downgraded from Buy Candidate to Hold/Accumulate after Wednesday trading session.
(Updated on Apr 24, 2024)
The Coca-Cola stock price gained 1.50% on the last trading day (Wednesday, 24th Apr 2024), rising from $60.64 to $61.55. It has now gained 6 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the last trading day the stock fluctuated 3.02% from a day low at $59.84 to a day high of $61.65. The price has risen in 7 of the last 10 days and is up by 4.46% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 6 million more shares were traded than the day before. In total, 19 million shares were bought and sold for approximately $1.16 billion.
The stock has broken the horizontal trend up. Breaks like this are often followed by swift and strong movements, and any correction down to the breakline at approximately. $61.04 is considered to be a "second chance" to hit a potential runner. It is, however, important that volume does follow the price as false breaks may appear and it may move back into the horizontal trend. Based on the rectangle-formation theory the stock is predicted to reach $64.04 sometime during the next 3 months.
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KO Signals & Forecast
The Coca-Cola stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down, there will be some support from the lines at $59.77 and $59.92. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 6.01%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.
Support, Risk & Stop-loss for Coca-Cola stock
Coca-Cola finds support from accumulated volume at $60.54 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $1.81 between high and low, or 3.02%. For the last week the stock has had daily average volatility of 1.70%.
Since the Coca-Cola has been rising for 6 days in a row, the risk over the next couple of days has increased. As we cannot be certain with regards to the size of the reaction, we urge caution.
Our recommended stop-loss: $59.11 (-3.96%) (This stock has low daily movements and this gives low risk. There is a buy signal from a pivot bottom found 6 days ago.)
Trading Expectations (KO) For The Upcoming Trading Day Of Thursday 25th
For the upcoming trading day on Thursday, 25th we expect Coca-Cola Company (The) to open at $61.01, and during the day (based on 14 day Average True Range), to move between $60.77 and $62.33, which gives a possible trading interval of +/-$0.781 (+/-1.27%) up or down from last closing price. If Coca-Cola Company (The) takes out the full calculated possible swing range there will be an estimated 2.54% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ $60.54, some $1.01 (1.64%) from the current price of $61.55, our system finds the risk reward attractive.
Earnings coming up
Coca-Cola will release earnings BMO on Tuesday, April 30, 2024.The consensus among the analysts for the expected earnings (EPS) is $0.690. We will update the financials statements for Coca-Cola, that can be found here as soon as the records are public. Our systems has calculated a possible swing of +/- 2.53% in the first trading day after earnings release.
Is Coca-Cola Company (The) stock A Buy?
Coca-Cola holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.
Current score: 0.000 Hold/Accumulate Downgraded
Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.
Predicted Opening Price for Coca-Cola Company (The) of Thursday, April 25, 2024
| Fair opening price April 25, 2024 | Current price |
|---|---|
| $61.01 ( 0.87%) | $61.55 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for KO
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 62.82 | 2.07 % | |
| R2 | 62.13 | 0.95 % | ||
| R1 | 61.70 | 0.251 % | ||
| Current price: | 61.55 | |||
| Support | S1 | 60.32 | -2.00 % | |
| S2 | 59.89 | -2.69 % | ||
| S3 | 59.20 | -3.81 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0 | . | |
| R2 | 0 | . | ||
| R1 | 0 | . | ||
| Current price | 61.55 | |||
| Support | S1 | 60.54 | -1.64% | |
| S2 | 60.50 | -1.71% | ||
| S3 | 59.83 | -2.79% |
KO Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Feb 15, 2024 | Mar 14, 2024 | Apr 01, 2024 | $0.485 | 0.799% |
| 2 | Oct 19, 2023 | Nov 30, 2023 | Dec 15, 2023 | $0.460 | 0.785% |
| 3 | Jul 19, 2023 | Sep 14, 2023 | Oct 02, 2023 | $0.460 | 0.83% |
| 4 | Apr 26, 2023 | Jun 15, 2023 | Jul 03, 2023 | $0.460 | 0.759% |
| 5 | Feb 16, 2023 | Mar 16, 2023 | Apr 03, 2023 | $0.460 | 0.737% |
FAQ
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