KO surged over 6% following a stand out earnings report: https://www.marketwatch.com/story/coca-cola-shares-rise-after-earnings-and-revenue-beat-expectations-2019-07-23. This powerful July 23rd ramp left behind a huge upside gap. Yesterday KO filled this gap after pulling back over 5% from the July peak. This key support zone also includes the 50 day moving average, the first 50D test since the May 50/200D bull cross.
We believe KO is set up well to resume the post earnings rally. A close back below the July lows($50.80) would violate the July lows sending a clear warning sign.
We are long KO in most managed accounts.