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.