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Coca-Cola (KO) Recently Broke Out Above the 200-Day Moving Average
After reaching an important support level, Coca-Cola (KO - Free Report) could be a good stock pick from a technical perspective. KO surpassed resistance at the 200-day moving average, suggesting a long-term bullish trend.
The 200-day simple moving average is widely-used by traders and analysts, and helps establish market trends for stocks, commodities, indexes, and other financial instruments over the long term. The indicator moves higher or lower together with longer-term price moves, serving as a support or resistance level.
KO has rallied 7.8% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests KO could be on the verge of another move higher.
The bullish case solidifies once investors consider KO's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 7 higher, while the consensus estimate has increased too.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on KO for more gains in the near future.