Coca-Cola is making a strong breakout to the upside following its latest earnings report, with the rally from the previous wave B consolidation now extending higher. The earlier structure was labeled as a potential triangle, and the breakout suggests that the broader bullish trend remains in progress.
However, due to the previous overlapping price action, there is still a possibility that the current advance is forming an ending diagonal. This means the upside could become more limited, and a temporary correction may still develop.
Earnings gaps often tend to get filled, so despite the strong momentum, we cannot rule out a wave 4 pullback. Ideally, the correction could find support around the earnings gap near 84, followed by the previous wave one high around 81.92, before the broader uptrend resumes.
Highlights:
• Strong earnings-driven breakout is extending the uptrend
• Ending diagonal remains a valid alternate scenario
• Temporary wave 4 pullback is still possible
• Key support levels: 84 gap area and 81.92 previous wave one high
• Broader bullish trend remains intact
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