Nestlé: Rangebound

Nestlé shares have continued to trade sideways recently. Within the current range, the stock initially gained ground, but in recent days, it has come under increasing downward pressure. We expect the upward move to continue, pushing above resistance at CHF 91.72. After that, a significant sell-off is likely. Alternatively, the stock could soon continue its slide. If it falls below support at CHF 69.90, it may initially set a new low before the anticipated upward move occurs (probability: 36%).