Coca-Cola shares rebound on Friday, company introduces “Lemon-Do” – its first drink containing alcohol

Coca-Cola Company (KO) said it had launched “Lemon-Do”, or its first ever alcoholic drink. It is to be offered in Japan in three variations, which contain 3%, 5% and 7% alcohol respectively.

Coca-Cola shares closed higher for the fourth time in the past eleven trading sessions in New York on Friday. The stock edged up 0.19% ($0.08) to $42.40, after touching an intraday high at $42.58, or a price level not seen since May 22nd ($42.60).

Shares of Coca-Cola have retreated 7.59% so far in 2018 compared with a 1.78% gain for the underlying index, S&P 500 (SPX).

In 2017, Coca-Colas stock surged 10.66%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

The new product is to target a growing segment of young drinkers and, more specifically, women.

The three Lemon-Do variations are modelled on Japans renowned Chu-Hi drinks, also known as “shochu highball”. The latter represent a mix of local spirit and a variety of fruit flavours, the most popular of which include grapefruit or lemon.

In Japan, Chu-Hi has already been introduced as an alternative to beer and has lured the attention of female drinkers.

Despite that Coca-Cola owned a winery between 1977 and 1983, an alcoholic drink has never been directly sold to customers during the companys 125 years of history.

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding Coca-Cola’s stock price, have a median target of $49.00, with a high estimate of $61.00 and a low estimate of $44.00. The median estimate is a 15.57% surge compared to the closing price of $42.40 on May 25th.

The same media also reported that 13 out of 28 surveyed investment analysts had rated Coca-Cola’s stock as “Hold”, while other 13 – as “Buy”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Coca-Cola stock are presented as follows:

R1 – $42.43
R2 – $42.47
R3 (Range Resistance – Sell) – $42.50
R4 (Long Breakout) – $42.61
R5 (Breakout Target 1) – $42.73
R6 (Breakout Target 2) – $42.78

S1 – $42.37
S2 – $42.33
S3 (Range Support – Buy) – $42.30
S4 (Short Breakout) – $42.19
S5 (Breakout Target 1) – $42.07
S6 (Breakout Target 2) – $42.02

By using the traditional method of calculation, the weekly levels of importance for Coca-Cola Company (KO) are presented as follows:

Central Pivot Point – $42.31
R1 – $42.69
R2 – $42.98
R3 – $43.36
R4 – $43.74

S1 – $42.02
S2 – $41.64
S3 – $41.35
S4 – $41.06