The Coca-Cola Company (KO) is a multinational conglomerate in beverages. Its business include manufacturing and selling the iconic Coca-Cola products, other non-alcoholic beverage concentrates and syrups. It also invests in healthier beverages. The company also excels in marketing. KO is listed on NYSE and is a component of DJI and S&P 500 under Consumer Staples.

The rally from 1 Dec 2021 onward with increased in volume was suggesting bullish run. The price then formed a small range between $57.50 and $61.50. However, on 7 March, the price started to retrace and retested the low around $56.25 on 10 March. This rapid down move coupled with the increased volume between 5 Jan and 10 March, seems to suggest early signs of Wyckoff distribution.

Nevertheless, the price started a sign of strength and eventually hit $66.25 on 25 April. The volume during this period was relatively lower that may suggest a rally in the absence of quality demand. The pullback were bigger spread bars and the inability to retest $66. The spike in volume on 18 May with the biggest down bar confirmed the Wyckoff change of character. 

A new range was formed between $59 and $64.50. There were attempts to rally, but the volume was decreasing. After the Wyckoff upthrust, the down bar on 26 August started the sign of weakness with ease of movement to break below $56. It should be noted there is an increase in volume, suggesting presence of supply.

Bias

Bearish. If the price cannot rally and commit above $56, it will likely retrace to the low of 1 Dec. 2021 around $51.

An early sign for KO to turn bullish would require the price to stay committed above $59.

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