What will happen?
Coca-Cola, the US beverage giant, will reveal its earnings results for the second quarter on July 21 before the stock market opens (16:30 GMT+3). There is no exact time on the official website, but it’s said that the release will be followed by an investor conference call at 15:30 GMT+3.
What to expect?
Investors have optimistic forecasts over Coca-Cola’s earnings results, that’s why traders can consider buying the stock now! The soda titan claimed their sales came back to a positive area at the end of the first quarter signaling the company is on the way to a steady recovery after the pandemic. Thus, we might expect to see encouraging results this time. Actually, the stock price rose due to the positive expectations but dropped at the start of this week amid the risk-off sentiment and the overall stock sell-off.
Main rival: PepsiCo
Its main rival, PepsiCo, has already published its Q2 earnings results, which were better than expected. PepsiCo claimed that its soda sales spiked by 21% due to higher prices and increasing demand compared to 2020 when the Covid-19 lockdowns were widespread. As a result, the stock price surged significantly after the data was announced.
Will Coca-Cola follow its main competitor?
Very likely! Coke is sold more than Pepsi in restaurants and sports events, so maybe we will see a huge rebound of Coca-Cola’s sales now when social-distancing restrictions have been eased.
Tech analysis
Look at the daily chart. Isn’t it look like a cup-and-handle pattern to you? If Coke breaks above the $56.50 resistance level, it may rocket to the psychological mark of $60.00. Even if the stock reverses down, the 50- and 100-day moving averages of $55.00 and $53.50 will support the asset from falling further.
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