Inverted Head and Shoulders SetupWhat I like here from a technical standpoint:
Large upwards slanting Inverted Head and Shoulders with a full price target near the gap down @ 48
Price making fresh 52-week highs and trading above all three major moving averages
Currently breaking through diagonal resistance
The Yearly R1 Pivot @ 40 would be the 1st target. From here we could see a re-test of the inverted HnS neckline.
Stops can be considered just below the Yearly Pivot @ 30
KHC trade ideas
KRAFT HEINZ - KHC - USAI can't say it's too cheap but it's under than its own value. I'm not going to buy this, it's just hooked my filter. (MACD and Stoch RSI have turned to positive.)
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Buying All the DipsKraft Heinz chart screaming "buy our dips" !
This Buffet darling has taken a serious beating since inception, crashing as low as -80% off the all time high. Buying after an 80% crash is generally the right time to begin accumulating an asset if you believe it has long term potential. Evidence of accumulation is also bolstered by the clean H&S bottom forming with lots of volume being traded down at these levels, as evidenced by the volume profile visual range.
Other bullish developments include the 200 dma flattening and beginning to slope up for the first time since the multiyear downtrend began. Additionally, if we invert the chart, we see an incredibly clean topping pattern that is just begging to crash lower and fill the gap.
For these reasons I'm long looking for the gap fill and a move to the .382 fib of entire chart range. I took a position in some relatively cheap long calls, will update this post before they expire. Happy trading!