Today we've chosen to take a look at the chart of Coca-Cola Co. (NYSE:KO) because the bulls were able to send the price above its previous swing high. Today's move higher may be used by the bulls to suggest that the rally could continue even though many have started to question its sustainability. As you can see from the chart below, we've identified the previous highs and lows that have acted as levels of support and resistance in the past. Notice how traders will watch for a break above a previous high to signal a buying opportunity. This is a common strategy used by momentum traders and this chart is a clear example of why this technique has become so popular. Many short-term traders will want to wait a couple of days to see if the bulls will be able to maintain a move above the resistance of the $62 mark.
Tickers in this Article: KO