This Defensive Name Looks Technically Promising

As I wade through the many chart set-ups, I see plenty of patterns that make me scratch my head. But that’s not the case with Coca-Cola (NYSE:).

I think it’s meaningful that KO exhibits an 8-month, rounded-base formation, is considered a defensive name and pays a dividend that yields 3.4% within a market that remains extremely selective in the names it takes higher (take for instance, the crowded big technology names like , , and .

Earlier this week, KO popped above multi-month resistance at 43, then ran to 43.78 and has since returned to its breakout plateau. And that’s where new buyers should act if the intermediate-term, technical set-up means that KO is under accumulation for a run at 45.

That said, are due on April 25 and will likely will be the next directional catalyst.

Based on the intermediate-term, technical set-up, I expect a positive reaction to the earnings, but I’m not suggesting anyone enter ahead of next Tuesday’s earnings.

Coca-Cola Company

Coca-Cola Company

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