Coca-Cola Co (NYSE:KO) might be known for refreshing beverages, but its stock action is far from bubbly. The iconic beverage maker's share price has slipped into a Death Cross – a technical signal where the 50-day moving average falls below the 200-day moving average – reinforcing a strongly bearish outlook.
Chart created using Benzinga Pro
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KO Stock In Bearish Zone
KO stock, at $62.20, is trading below key moving averages, signaling further bearish momentum:
- Eight-day SMA: $62.88
- 20-day SMA: $63.21
- 50-day SMA: $64.84
- 200-day SMA: $64.95
This alignment places KO stock in a firmly bearish zone, with each level presenting a bearish signal, as the stock price trails all major averages.
Selling pressure is evident, leaving KO stock vulnerable to further declines. Over the past year, the stock has gained 8.40%, but recent trends are souring with a 1.72% dip in the last five trading days.
Coca-Cola's M&A Move: Billson's Beverages Acquisition
While the charts deliver sour news, Coca-Cola is making moves to sweeten its portfolio. The company inked a deal to acquire the ready-to-drink (RTD) spirits business of Australia's Billson's Beverages. This marks Coca-Cola's first foray into Australia's alcoholic beverage market, adding products like Vodka with Tangle and Vodka with Grape Burst to its lineup.
Matthias Blume, Coca-Cola's vice president of marketing for ASEAN and the South Pacific, highlighted the strategic importance of the acquisition. "This acquisition allows us to expand in the dynamic and growing alcoholic RTD category in Australia, aligning with our vision to provide a beverage for every occasion."
While the deal may invigorate Coca-Cola's brand in Australia, it does little to address the stock's current bearish momentum, as traders remain focused on near-term technical challenges.
Investor Outlook
For now, Coca-Cola's fizz on the Australian acquisition front isn't enough to offset its bearish technical trajectory. With the Death Cross looming and selling pressure evident, KO investors may need to brace for more downside ahead.
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