SlovakTrading

Kraft Heinz CO (KHC) - After bear flag long move potencial

Long
NASDAQ:KHC   KRAFT HEINZ CO
Almost everyone has noticed the bad news about the KHC , which is owned by the legendary investor Warren Buffet. The fundamental analysis could still point to further weakness, but the technical analysis might be a bit more optimistic.

We can see some nice patterns on the shorter timeframes (1H-4H). After the big drop, a consolidation triangle had formed, which was broken to the downside, thus the bearish trend was confirmed. Currently, there is a bearish flag , so I guess the price could go a bit lower and test the green area. There is still the possibility of a double bottom , but there is also a chance for a smaller rally from these levels.

The green area should be a very strong S/R area, because of the1.27 Fibo -> this could mean a mid-term bottom has formed here.
There is also the RSI bullish divergence and the so-called Bullish Three Drivers pattern. Plus, the market is Oversold

BUY AREA - GREEN ZONE
TP and SL will be revealed after the trade is active.

It could be a good technical trade with a solid RRR . BUT, we have to keep in mind that the poor fundamental situation of this company could trump the technical analysis . This stock has some problems but it is still a great company with more than 200 brands.



Comment: We saw a bounce and there is potential of double bottom pattern but we need to see breakout of blue resistance (horizontal line). Signal will be valid after breakout and confirmation.
Comment: After EMA 200 breakout

Comment: Double bottom confirmed.

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