Can We Expect a Big Breakout in the Coca-Cola HBC Stock?

• The stock saw a huge rally in the initial few months of 2023 but has been consolidating sideways for a long time now.
• The current setup looks strong, signaling a healthy breakout.
• £22.46 has become an important support. The buyers are not letting the stock go below this level.

Coca-Cola HBC AG also known as Hellenic Bottling Company or just Hellenic is the world’s third-largest Coca-Cola anchor bottler. In terms of volume, the company sells more than 2 billion unit cases. The company is a constituent of the FTSE 100 Index. It was named the industry leader among beverages. It was also included in the FTSE4 Good Index.

Financially, the company looks highly stable with strong revenue numbers every year and a subtle regular growth in net income. The company looks pretty strong in terms of finances and that’s a huge positive for the stock and its investors.

Technical analysis for the stock

The Coca-Cola stock has seen huge price movements in 2023. The stock saw a huge rally up until its resistance at £26.04. It was a strong selling point. The stock has been consolidating sideways since the end of May and is now due for a big move.

The current setup looks somewhat positive. Buyers are highly active and they have not let the stock move below £22.46 levels. We can expect a healthy Coca-Cola positive move in the upcoming weeks. If the stock breaches its resistance at £23.33 with good volumes, we can then have a bigger breakout. 

Levels above £24 look like a good entry zone in the stock with a target of £25.8 in the upcoming few months. 

The stock may not breach the current support at £22.46. If we see a negative movement from the current price, 21.87£ will act as our next support. The target below that increases the chance of a big breakdown but this is unlikely to occur.

On an hourly chart, we see the stock trading in between the range of £22.46 and £23.33. The stock has not attempted to breach this zone even once. There has been a good active number of buyers in the stock currently and thus we might see some upmove from here.

Technical indicators including EMA predict a possible bullish movement in the stock from the current levels. Analysts too have predicted the price to cross 27£ in the upcoming year. That is a great positive for the stock. If entered at the right levels, tit can prove to be a great choice for investment. 

Conclusion:

The current setup for the stock looks good. If we see a good healthy confirmation at the appropriate levels, a good buying opportunity can be captured. One must do proper analysis and wait for a good healthy breakout with strong volumes before making a move. Overall, the view on the stock current is bullish.

Important technical Levels:

• Major support levels: 22.46£ followed by 21.87£.

• Major resistance levels: 23.33£ followed by 24.03£.