Coca-Cola has quietly given back practically all of its gains from earlier this year. The stock actually got off to a very strong start, making new all-time high after new all-time high from March until May. By mid-May, the stock was up almost 20%, an amazing 5 month performance for a staid old soft drinks company.
Ever since that blazing start, KO has been on a steady trend lower. The stock’s made a series of orderly lower highs and lower lows, and is now only up 3% in 2013:
This gradual march lower has actually brought KO quite close to its crucial long-term support level between 35 and 36. That area served as resistance in 2011, and was important support in 2012:
The whole consumer staples sector has been weak, but KO has been especially weak in the past few months. However, with the stock fast approaching long-term support, we’re sharpening our pencils to at least play for short-term consolidation, if not an outright bounce.