Coca-Cola (CCE) is lining up for a possible short-term breakout and rally. One of my many Price Momentum Oscillator (PMO) scans pulled up this stock. The scan looks for stocks with positive Trend Model configuration (5-EMA > 20-EMA > 50-EMA > 200-EMA) that have just had a PMO BUY signal trigger.
What caught my eye on this chart was the bullish double-bottom formation and the neckline sitting along all-time highs. The new PMO BUY signal arrived in neutral territory, so there is short-term potential for a rally. The SCTR value is above average. OBV is reaching past the previous two tops (clearest to see in thumbnail).
The intermediate-term picture is bullish. CCE is on an intermediate-term PMO BUY signal. The rising trend channel is due to be tested at the top.
The long-term picture is not as rosy. The long-term PMO is rising, but we don't have a crossover BUY signal yet. Additionally, I'm not happy with the divergence between the PMO tops and price tops.
Conclusion: Coca-Cola has short-term potential, but the longer-term picture is somewhat bearish.
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Technical Analysis is a windsock, not a crystal ball.
Happy Charting!
- Erin
