The Coca-Cola Company (KO)

The Coca-Cola Company is one of the biggest beverage brands in the world. It has a host of food and beverage brands under its belt. The company sells 1.8 billion bottles of Coca Cola per day and that gives the company a deep presence in all corners of the world. In current times, Coca-Cola has recognized the shifting consumer preferences and, as a result, diversified into other products than sugar-based soft drinks. Coca Cola has been around for 130 years and its scale, competitive advantages, and brand will continue growing in the future as well.

The long-term monthly chart for Coca Cola shows a steady uptrend that began back in 2011. The trend accelerated in 2019 before the stock fell by a massive 38% in February 2020. The price briefly broke the bottom of the long-term trend. However, since hitting a bottom in March 2020, the stock has gained 27%. It has managed to stay above the bottom trend line for 3 months in a row and now looks poised to test the $51-level which was previously a support and can now act as a resistance. Stop loss can be placed somewhere below the bottom trend line around $42.

Position taken today   at $ 48.49 with stop loss 13.84% below at $42. With short term take profit at $60 giving a return of 23%