Reports earnings tomorrow. Expected EPS of $0.48 on revenue of $10.67bn

Taking a look at Coca-Cola ahead of its earnings tomorrow. Currently, its stock is trading at around $59.66 a share. Looking at its competitors and their earnings performance within the beverage industry, many have been affected by the conflict in the Middle East. Profits beat expectations but revenues came in short, with lower revised guidance. So it would be reasonable to assume that we could see a similar issue here for Coca-Cola. The weekly chart, in our opinion, still doesn’t offer enough for a potential gain as of today. The bearish trend still seems to remain in place with lower highs followed by lower lows. The company’s shares saw a small boost towards the back end of the year, but it was due to the overall high performance from the market. Until trendline resistance is broken, a move lower once again is likely. Especially if the earnings reaction is similar to that of the big players in the industry. Towards the downside, if the support of $51.55 is broken, then the next level in focus would be $48.11. Towards the upside, resistance reads $61.00 followed by $63.36 (trendline resistance). A break and close above $63.36 would suggest that perhaps we have broken out of the downward trend. Based on the technical indicators, the bias is neutral to bullish. The MACD is still positive, but the volume has lowered a little. Whereas the RSI is neutral as it reads 53.