KHC is forming a bullish Island Reversal. Recently the stock gapped down below 29.00 and never filled. Today it gapped above 29.00. Could this be the bottom. It is a retest gap so I will give it a few days to a week to retest to take a small position.
Looks like Kellogg is forming a head and shoulders pattern on the weekly chart. It also happens to be forming right on the 200 MONTHLY SMA! Looking at the monthly chart the trend is clearly bullish...with controlled risk its definitely worth a shot. If it doesn't work out this time ill be looking around $42 if it gets down there.
I believe we will retest the 200 Weekly SMA or some lower support levels. I would like to see a big double bottom off the 200 weekly SMA so I can see some consolidation between the major daily moving averages and the 100 weekly SMA in the next week before another breakdown to retest the 200 Weekly.