Kraft Heinz Company (KHC): From IPO to a Bearish Momentum

Kraft Heinz Company (KHC): KHC

Analyzing The Kraft Heinz Company on the weekly chart, we've observed a notable price movement since its IPO in 2015. Initially, there was an uptrend until 2017, followed by a three-year downtrend culminating in the COVID-19 low at $19.99. Our current analysis suggests an impending upward movement. We anticipate Kraft Heinz to retrace between 50% and 78.6%, targeting ranges between $58.64 and $80.81 for the second Wave (2), indicating we're likely in a Zigzag correction phase. It's expected that Wave (3) will eventually fall significantly below the $19.99 level, marking a process that will unfold over years.

A closer look at the daily chart clearly shows the 61.8% retracement level for the Zigzag correction at $30.68. We now expect the stock to rise well above the $45 mark, reaching our specified target areas without falling below again.

Despite a longer-term bearish outlook, we'll monitor the 4-hour trend for potential short-term bullish opportunities. We are confident that Kraft Heinz will experience an uptrend in the upcoming months before continuing the longer-term downtrend.

Comment:

At Kraft Heinz, we still believe we are dealing with a downtrend. On the other hand, it's conceivable that we've been seeing a bullish trend since the low at $19.99. Yet, we're not ready to discount the possibility that a bearish scenario is likely. This is because we've observed a five-wave downward structure from the all-time high of $97.77 down to $19.99 on the broad chart. Zooming in since our last analysis, we've developed Waves 1 and 2, which should lead to Wave (3). This, in turn, should be at a minimum of the 161.8% level, with a minimum target of $45 to a maximum level of $60. We don't believe it will exceed this significantly.

We're now considering whether to find smaller entries. Regardless of whether we're in a bearish or bullish cycle overall, we expect to see a five-wave upward structure for Wave ((c)). Both in zigzag and flat scenarios, the C-wave is a five-wave structure. Thus, our scenario involves searching for entries, as we anticipate a rise with five-wave structures in both scenarios.

Comment:

Our updated 4H-Chart