Coca-Cola is a beverage company. Co. make its branded beverage products available to consumers throughout the world through its network of independent bottling partners, distributors, wholesalers and retailers as well as its consolidated bottling and distribution operations. Co.'s operating structure includes the following operating segments: Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Global Ventures; and Bottling Investments. Co. markets, manufactures and sells: beverage concentrates and syrups, including fountain syrups; and finished sparkling soft drinks and other beverages.
When researching a stock like Coca-Cola, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from KO Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for KO stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the KO 200 day moving average ("KO 200 DMA"), while one of the most popular "shorter look-backs" is the KO 50 day moving average ("KO 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Coca-Cola. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the KO 200 DMA and the KO 50 DMA, we get a moving average convergence divergence indicator ("KO MACD"). The KO MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |