Coca Cola’s 2nd quarter earnings beat estimates as its ready-to-drink coffee beverage performed well in the market for the period under review. Coca Cola’s stock surged to an all-time high of $53.77 after it reported earnings per share of 63 cents, which was better than the 61 cents that the market was expecting. It was also an improvement from the same period last year, when the company’s earnings per share stood at 54 cents.
Coca Cola’s instant coffee drinks (Costa Coffee and Coca Cola Plus Coffee) as well as its Zero Sugar soft drink, have been fingered by the company executives as being responsible for the stellar performance in sales and revenues. The company, which acquired UK coffee house chain Costa in January 2019, has seen its stock rise 8.2% in 2019.
Coca Cola Technical Play
The stock price has experienced an upside gap, which has taken it above the upper border of the rising channel. Coca Cola has been in an uptrend for some time. It is best to buy on dips to follow the upward trend. A Fibonacci retracement trace from the January 2019 swing low to today’s swing high shows that the 23.6% retracement level ($52.30) matches the upper border of the rising channel. This may be the first support dip to watch out for as price action evolves.Don’t miss a beat! Follow us on Twitter.
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