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

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.