Coca-Cola (KO) Stock Analysis: Bearish Divergence on Weekly MACD Signals Potential Sell-Off

Coca-Cola Co. (NYSE: KO) is currently showing signs of a bearish divergence on the MACD indicator on the weekly chart, raising concerns among technical traders and investors. As of the latest close, the beverage giant’s stock ended at $69.24 per share. With the US markets closed for a public holiday, attention now turns to how the market will react at tomorrow’s open.

Resistance at $73-$74 Proves Challenging

The stock has faced strong resistance around the $73 to $74 range, struggling to break above this level for the second time in April. This failure may have triggered recent profit-taking activity among investors, capping further gains in the short term.

MACD Turning Bearish: Is a Deeper Correction Ahead?

The MACD (Moving Average Convergence Divergence) has recently turned bearish, suggesting momentum is shifting towards the downside. This could lead to increased selling pressure heading into the summer months. Technical traders may interpret this shift as a signal for a potential deeper sell-off.

Key Support Levels to Watch

Near-term support is currently seen at $68.58, followed by the April low of $66.14. A decisive break below this level could pave the way for further downside, with the next major support area sitting around the lower trendline of the Covid-era channel, estimated between $61 and $65.

Upside Potential Requires Break Above $74

On the upside, a break above $74 would be required to invalidate the current bearish outlook. Such a move could indicate renewed bullish momentum and open the door for a test of the upper trendline near $76, which may act as tactical resistance in the near term.