New York, March 18th (TradersHuddle.com) - Shares of Coca Cola Co. (NYSE:KO) closed the trading session at $53.84 placing the price action in a very tight range, given that calculated support is set at $52.23 and the calculated resistance based on an algorithm of peaks and troughs is set at $55.04

The Coca-Cola Company (NYSE:KO) manufactures, markets, and distributes soft drink concentrates and syrups. The company also distributes and markets juice and juice-drink products. Coca-Cola, which owns one of the most valuables brands in the world, sells its finished beverage products primarily to distributors, and beverage concentrates and syrups to bottling and canning operators. The Coca-Cola Company was founded in 1886 and is based in Atlanta, GA.

Coca Cola's stock price action indicates that both sellers and buyers are materializing very close to each other, which is indicative to a momentum building area, as the stock can resolve by breaking out of the tight range that developed.

Traders wanting to establish a position should place close attention to Coca Cola's price action, as any movement outside its predefined range of $52.23 and $55.04 could grab the attention of momentum buyers, looking for a big movement in the price of the stock. Traders need to be aware that tight range resolution works both ways, hence, a move below support at $52.23 could spark above average selling. A tiered approach can be a good way to approach starting a position in Coca Cola's, by establishing a starter position while the stock is in the tight range, and then adding to the position as it breaks and closes above resistance.