Coca-Cola (KO) Breaks Higher After Earnings, But Wave 4 Pullback Risk Remains

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