KO 1D — A Diamond Not Yet Broken, But Already Cracking

On the daily chart of Coca-Cola, a classic diamond top structure is forming — not yet completed, but clearly visible. The market expanded its range in the initial stage, then began to compress into a tighter zone, creating the typical shape of a diamond. This isn’t a continuation pattern — it’s the setup phase for redistribution.

The key level sits at $68.50 — the base of the diamond. As long as this line holds, the pattern remains inactive. But current price behavior says more than enough: weakening momentum, falling volume, and a lack of aggressive follow-through on recent highs. This isn’t accumulation — it’s preparation.

Price is currently trading between the MA50 and MA200, signaling a neutral phase with downside risk. The moving averages are narrowing, but no crossover has occurred yet. That’s critical — the trend isn’t broken, but it’s clearly losing energy. If $68.50 gives way, the measured move from the pattern projects a decline toward $61.82.

From a fundamental standpoint, Coca-Cola remains stable — but uninspiring. Earnings met expectations, revenue was steady, and no major catalysts are visible. In this type of environment, technical structure often becomes the tool for institutional rotation — not because the story collapsed, but because the setup makes sense.

The edges of the diamond are in place. All that’s missing is the break. If the neckline fails, the downside scenario is already built — structurally and logically.