The Coca-Cola Company (NYSE: KO), a world-renowned American multinational beverage corporation, saw its quarterly revenue figure top Wall Street estimates, while earnings were in line with expectations, with CEO James Quincey reporting that the beverage giant “had a good finish to the year”.
Coca-Cola reported a quarterly earnings per share (EPS) figure of $0.45, meeting analyst expectations, while revenue estimates were beaten, mainly fuelled by higher prices for its drinks. The multinational beverage corporation reported quarterly revenue of $10.13 billion against expectations of $10.02 billion, representing a 7% year-on-year increase from last year’s quarterly figure of $9.46 billion. Despite beating revenue estimates, Coca-Cola’s share price closed 1.67% lower than it opened on Tuesday, the 14th of February. The company reported that its higher prices had curbed demand for specific products. Furthermore, Coca-Cola has warned consumers that “there will be price increases across the world in 2023” due to persistently high inflation levels and a turbulent macroeconomic environment.
Technicals:
The price action on the renowned beverage corporation Coca-Cola has been consolidating sideways for over a month, with the primary resistance and support levels firmly at $64.77 (green line) and $58.04 (red line), respectively.
For the bull case, a swing trading opportunity on the 4H chart could potentially exist if the price action tests and pushes above the $61.72 resistance level (black dotted line), which could be the first resistance point in the price for the bulls. If the price action breaches this resistance level, the possibility exists for the share price to increase towards the $64.77 resistance level (green line) and potentially higher.
The bears could see the price action trend lower towards the $58.65 support level (black dotted line), which could serve as a potential re-entry point for bullish traders. Alternatively, the share price could trend lower, test and break through the $58.65 support level and continue to trend lower towards the major support level at $58.04 (red line).
Summary:
Depending on how the market perceives Coca-Cola issuing warnings of future price increases throughout 2023, the possibility may exist for a long above $61.72 to the next significant resistance at $64.77. For the bear case, the potential exists for the bears below $58.65 to the significant support level of $58.04.
Sources: CNBC, Coca-Cola, The Motley Fool, The Wall Street Journal, Trading View
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