KHC is the 5th holding of Berkshire. What can we expect?
Today we will look at Kraft Heinz, a stock in the top 5 holdings of Berkshire Hathaway, that has not been performing yet with stellar results, but that may change, or not... So first, let's look at some conclusions from a technical perspective.
-From 2017 to 2019, the price was clearly on a bearish trend, defined for the most external trendline (white line)
-From 2019 until the beginning of 2021, we observed a consolidation period where the price moved sideways between 37.00 and 27.00
-From 2021 until now, we observed the beginning of a slightly bullish trend and the first breakout of the bearish trendline
-Now, we can see a corrective pattern on the edge of the previous trend (this type of behavior is typical to see when the price is about to break a key level (trendlines, or support/resistance. We will tend to observe any type of corrective patterns.
Ok, what now? What's your view? I have defined activation, invalidation levels, and targets based on all the previous elements. IF the price reaches the green horizontal line, I will consider that my analysis is active, and I will think it is no longer valid if the price reaches the red horizontal line. The target for this movement is 64.00 (on the next resistance level), which means a 60% increase from the activation level.
Regarding time, I think a movement like this will need around a year to happen (if it happens, of course...)
What if the price never reaches the activation level and keeps falling? Then I will cancel my view.
Are you trading this with your personal account? No, I'm not taking this setup. However, I find it an interesting chart, from a technical perspective and under the idea that it is the number 5 holding of Berkshire Hathaway.
Thanks for reading; feel free to share your view in the comments.
-From 2017 to 2019, the price was clearly on a bearish trend, defined for the most external trendline (white line)
-From 2019 until the beginning of 2021, we observed a consolidation period where the price moved sideways between 37.00 and 27.00
-From 2021 until now, we observed the beginning of a slightly bullish trend and the first breakout of the bearish trendline
-Now, we can see a corrective pattern on the edge of the previous trend (this type of behavior is typical to see when the price is about to break a key level (trendlines, or support/resistance. We will tend to observe any type of corrective patterns.
Ok, what now? What's your view? I have defined activation, invalidation levels, and targets based on all the previous elements. IF the price reaches the green horizontal line, I will consider that my analysis is active, and I will think it is no longer valid if the price reaches the red horizontal line. The target for this movement is 64.00 (on the next resistance level), which means a 60% increase from the activation level.
Regarding time, I think a movement like this will need around a year to happen (if it happens, of course...)
What if the price never reaches the activation level and keeps falling? Then I will cancel my view.
Are you trading this with your personal account? No, I'm not taking this setup. However, I find it an interesting chart, from a technical perspective and under the idea that it is the number 5 holding of Berkshire Hathaway.
Thanks for reading; feel free to share your view in the comments.