This Warren Buffett stock just formed a death cross in over a year; What next?
The post This Warren Buffett stock just formed a death cross in over a year; What next? appeared on BitcoinEthereumNews.com.
Through Berkshire Hathaway (NYSE: BRK.A), Warren Buffett has built a reputation for picking long-term stock market winners and building a portfolio that thrives in different economic phases. However, even his most trusted investments remain susceptible to short-term technical signals that suggest possible trouble ahead. Now, Coca-Cola (NYSE: KO), one of Buffett’s favored stocks, accounting for 8.4% of his portfolio, has formed a ‘death cross‘ for the first time since July 2023 – a bearish signal when the 50-day moving average (MA) dips below the 200-day moving average. Notably, the last time this happened, KO shares tumbled 18% to their lowest levels since March 2021. KO stock price analysis. Source: Barchart What next for KO stock? This technical setup often reflects weakening momentum and growing bearish sentiment. With KO trading at $62.55 in the latest trading session, the equity looks to sustain the downward pressure. The stock sits beneath the eight-day simple moving average (SMA) at $62.88, the 20-day SMA at $63.21, the 50-day SMA at $64.84, and the 200-day SMA at $64.95. This alignment positions KO in a decisively bearish zone as each moving average acts as a resistance level. Analysis from a technical analyst with the pseudonym Jtrade reinforced the possibility of further downside. In an X post on December 20, the analyst observed that Coca-Cola’s stock had formed a bearish descending triangle pattern, indicating the potential for continued decline. KO stock price analysis. Source: TradingView The pattern indicates that sellers are steadily gaining control, as demonstrated by the series of lower highs near the $64 to $65 level. Meanwhile, the flat support zone around $60-$61 shows buyers hold a crucial price point; however, a break below this level could trigger a substantial downward move. Meanwhile, Wall Street analysts at TipRanks have given Coca-Cola a ‘Strong Buy’ rating, with…
