Technical Analysis

Coca-Cola’s image before earnings report

By Antreas Themistokleous

13 February 2023

Shares in Coca-Cola Company (KO) are still managing to remain in profit regions after a successful last quarter in 2022. The company is making gains of around 10% compared to the previous quarter. 

The company’s earnings report for the fiscal quarter ending December 2022 is set to be released on Tuesday, 14 February, before market open. The consensus EPS for Q4 is $0.45 compared to Q4 2021’s $0.45. 

The consumer defensive stock of Coca-Cola has a decent dividend yield of around 2.87%, which is relatively good news for its investors, while the payout ratio is a little more than 75%. This indicates the company is paying out the majority of its earnings in dividends, which may sound like good news to its investors, but at the same time, it means that the company is not very keen to engage in growth activities.

On the technical side, the price is trading on a very strong technical resistance area, which is made up of the daily bullish trendline, the 100-day moving average just below the 38.2% of the Fibonacci retracement level.

With the Stochastic oscillator trading near the oversold levels and the support of the lower band of the Bollinger bands and the 50% of the Fibonacci, we might see some correction to the upside before the release of the earnings report.

If the bears are proven to be strong, we might see a continuation to the downside with a first point of support laying around the $59 area.

This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.


Antreas Themistokleous
Antreas Themistokleous

Antreas Themistokleous is a trading specialist in Exness. He is a Certified Financial Technician since 2018. As a member of the Society of Technical Analysts, Antreas is implementing advanced use of indicators and patterns to conclude in an action plan for different trading strategies.

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