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Shares of Coca-Cola (KO) - Get Coca-Cola Company Report  were higher in Friday trading, up 2% to $54.88 after the company reported its third-quarter earnings.

The rally has shares within a stone's throw of their 52-week highs and with a push higher Coca-Cola stock could be making new highs before we know it.

A solid earnings report is usually a good catalyst but will the company's results be enough? Earnings of 56 cents per share were in-line with expectations, while revenue of $9.5 billion grew 8% year over year and beat estimates by $80 million. Further, organic sales jumped 5% vs. expectations of just 4.1%.

So far, the results have investors feeling confident in Coca-Cola despite a down market on Friday. It may be one reason why PepsiCo (PEP) - Get PepsiCo, Inc. Report stock is flat on the day while the stock market is under pressure.

Given its earnings report and how close Coca-Cola stock is to new highs, it makes it a perfect candidate for Real Money'sStock of the Day

Let's take a closer look at the charts.

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Trading Coca-Cola Stock

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When Coca-Cola shares traded lower at the start of October, the stock broke down below an uptrend line that had been in place since March (blue line). As it rallies on Friday, it's approaching the backside of that trend line.

We don't yet know if this mark will act as resistance or if KO stock will be able to push through and/or grind along this level. If it can do one of the latter two, Coca-Cola stock may very well surpass $55.51, its adjusted 52-week high. On an unadjusted basis, that high sits up at $55.92.

The momentum-measuring MACD metric (blue circle) is swinging in bulls' favor, which could bode well for a push higher. In short, let's look for a close over $55.50, which could trigger an even larger rally to new highs.

On the downside, bulls will want to see the 50-day moving average hold as support. KO stock reclaimed this mark with its gap-up action on Friday. Holding above it not only bodes well for the bulls' longer-term case, but it keeps shares over prior short-term resistance (purple line).

A break below the 50-day moving average could send Coca-Cola stock down to $53 and the 100-day moving average. Below that and the 61.8% retracement could be in the cards.

The bottom line: Watch $55.50 on the upside and the 50-day on the downside.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.