August 29 Chart of the Day - Coca Cola
If you've been following our Chart of the Day posts and have benefited from one or more of them we ask that you consider participating our NEW Pay It Forward - Traders Helping Traders program.
As many people may know, the Coca-Cola (KO) company is one of Warren Buffet's top 5 holdings. And has been for quite some time.
From a price action technical analysis perspective we can see that since the 4th quarter of 2022 price has been seemingly attracted to the $60 area sort of like a magnet.
In fact, each time price has tried to break above or break below that area it has returned to it. Each time it tried to move away it didn't move more than $7 in either direction.
So no surprise then to see that price closed at $60.56 on Monday.
With price moving sideways and essentially consolidating forming a "change control zone" on the weekly chart might price be setting up for its next big move?
Change control zones are one of the five tools we teach when charting anything. By definition, they are an area that represents where neither the bulls nor bears are in charge. Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it. Or, price can trade aimlessly sideways within it. When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
Take a look at the charts and let us know what you think.
We'd like to hear from you in the comments sections.
Have a chart you'd like to see featured?
Send requests at https://stockchartpros.com/community/contact
Would you like charts like this delivered directly to you every day? ChartPros Trade Room is offering an OPEN HOUSE 7-day free trial at this link.