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Coca-Cola Investors: Watch These Charts

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In Eagle Bay’s most recent Dow Thirty report, founder and Market Technician JC Parets looked into the movement of The Coca-Cola Co (NYSE: KO) shares.

Structurally, the company continues to struggle after not being able to hold above the highs from 2013 over the fourth quarter of 2014. Eagle Bay only wants to be long above that level -- “the next upside objective in that case would be near 47.50 which is the 161.8% Fibonacci extension from the 2013 correction.”

If levels stand below the May 2013 highs, the firm won’t get involved.

Short-term, the analysts wanted to get long above the $42 mark, with a target near $44.75, which represents “both the October highs as well as the 161.8% Fibonacci extension from the summer correction.” After hitting their target in late November, “prices rolled over nicely, but failed to hold the summer highs like we would have wanted to see,” they added.

Related Link: Morgan Stanley, Facebook, Coke... Some Huge Names Report Earnings This Week

The firm has preferred to stay away from Coca Cola as they continue to say “this is a sloppy and mis-behaved market.”

Parets concludes: “I am not surprised that we have broken down below the uptrend line from the lows last year. Momentum is now in a bearish range. So far prices are holding on to the 61.8% Fibonacci retracement of the 2014 rally but I see little upside as we have a flat 200 day moving average. I would be selling towards 42 if we get up there.”

Posted-In: Dow Thirty Eagle Bay Eagle Bay Capital Eagle Bay Solutions JC ParetsAnalyst Color Technicals Trading Ideas

 

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