I believe the bottom is in, structure has been broken and a clear range has formed with confirmation price will now rise.
This is good for a long term investment and also a trade idea in which you can gain over 30% until the first target.
There is also a dividend of over 5% on this stock which makes it great to hold long term in potentially turbulent periods to come. This robust company I suspect will hold up well in recessionary periods.
but i am not too happy with the price action recently, thinking maybe 30 bucks first.
freddie1996
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@MikeMM, 30 is a possibility but it doesn't seem like price should go below 31. The leg which broke structure starts at 31, so most of the time if the setup is correct price will not go below the low of the leg which broke structure. 28.5 is the next low which can be considered to also be a valid low which breaks major structure, but this low is less significant because at 31 there is that much clearer shift in momentum, orders came in there with more volume.
I do agree that price action of Friday was not great, was hoping to see continued upwards momentum. I am short on the NAS100 from early Friday and caught the move down and I'm thinking there is a possibility of continued downside on stocks. Whether that impacts KHC is hard to say as it's quite a recession-proof company and is less effected by what the main US indices are doing.
Interesting to see the very strong looking inverse correlation between KHC and NAS100 since May 2021. Bullish technicals on KHC coinciding with my bearish technicals on NAS (not all shown in screenshot) adds a little bit of confidence to my idea.
but i am not too happy with the price action recently, thinking maybe 30 bucks first.