Remember Coca Cola (KO)? We just covered that last week. The stock’s breaking out now.

I’m coming back to Coca-Cola ( NYSE:KO ). I think it was last week that I covered this, I forget exactly when, but it’s been recently. The reason I’m coming back to it is this, if you recall I noted that the stock broke out, was testing this breakout level up to the 200-day moving average where it was stalling out. Your buy point is when the stock breaks above the 200-day moving average.

Well guess what it did today? It did just that and it did it on volume. A lot of the Dow components are up, the Dow’s very strong. And now, if you just look at this relative to that 50-day moving average, its been trading below, below, below, and now it’s above.

What’s happening to that 50-day moving average? It’s starting to curl up. Upside momentum, still pretty strong, stochastics drifting lower a little bit, do you know why? Because of this; so this is a stock that I think you can be buying right now, things go better with coke, as long as this stock stays, I’ll say above $39.00, this is then a really tight stop. This is a stock that you can take, because this is a classic reversal pattern here and a breakout.