COCA-COLA showing strength but needs to avoid this fractal.

The Coca-Cola Company (KO) has been having an impressive non-stop rally ever since the March 10 low as last week it broke above its yearly High. With the 1D RSI approaching the overbought zone of 70.000, exhaustion for this rally may be close. In fact, it resembles the September - November 2020 sequence, as it just flashed a Red Ichimoku, which on the 2020 sequence was a bearish reversal signal.

If the price fails to break the 1.236 Fibonacci extension, be ready for a pull-back that can reach as low as the 1D MA200 (orange trend-line). On the other hand, a closing above the 1.236 Fib, could deliver a rally extension similar to December 2021 - February 2022, that reached as high as the 2.0 Fib extension. On the current sequence, the 2.0 Fib is around $68.50.




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