Discussed in this article: Coca-Cola Co. ( $KO )

I’m looking at Coca-Cola ( NYSE:KO ) and I wanted to point out a potential move here. Now here’s the deal; we look at this down trending line here, there’s resistance, and it started here after a break down below the 50 and then a failed attempt to get back above it.

The 50-day moving average has been acting as resistance all the way down. In other words, instead of traders buying on these dips now they’re selling at the 50-day moving average, that’s just the magic of trading, you can see that all the time. We can also see that the 200-day moving average has actually been pretty important to this chart, not as much as the 50-day moving average.

So what I’m looking at here is a breakout, not above the 200-day moving average, but, a breakout above this 50-day moving average, above this down trending resistance line. So now we’re broken out above that, perhaps this is the only test and then we blast higher, or perhaps we get more downside and then we blast higher. Either way what I’m looking at is this level here, on the 200-day moving average, if Coca-Cola ( NYSE:KO ) gets back above that then we’re likely to see further upside.

So what I would suggest doing is set a price alert I think like at 39.50 or so, maybe a little bit below that, or just watch it. Then if Coke ( NYSE:KO ) starts breaking out above here, I think it’s okay to go long, because you’ll know you get a pretty good sense that this downtrend has been broken, the stock has corrected as much as it’s going to correct, and now we’re starting a new uptrend.

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

Things did indeed go better with Coke (KO).

Do things really go better with Coke (KO)? Let’s find out.