KELL trade ideas
Stochastic Divergence Channel Line BounceKellogg slight stochastic divergence in a falling channel. Looking for the bounce and possible move up out of the channel.
Buy: 63.25
Stop: 62.30
Target: 64.57 - 66.98 (2.08% - 5.90%)
Retest of resistance I like the volume today and the gap up. I see a retest of resistance of $65 in the near term. Play with shares or options.
Buy recently and stop loss when break the support lineIt's a opportunity to buy and hold this ETF for a short to mid period.
Stop loss 2% below the support line.
KELLOGG- Why Question Mark?On chart gap is related to Kellogg laying off 400 workers in their Texas plant. This is not a positive sign for future.
Kellogg's Technicals Continue To Point DownKellogg Company has been in a clearly defined downward trend since February 2017. On April 26, Kellogg broke down and away from the wedge pattern it had been in. From this point, the stock broke down to around 68.60 which fell in line with a support trend line that began February 2014. The current resistance line is steadily dropping. The projected future movements are highlighted below.
When we take a look at other technical indicators, the relative strength index (RSI) is at 44.6048. RSI tends to determine trends, overbought and oversold levels as well as likelihood of price swings. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading has the stock relatively neutral although it recently bounced up from oversold territory when the stock dropped around April 26.
The true strength index (TSI) is currently -18.9951. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock has been trending down. Due to the delayed correlation in the movement of the stock, this indicator typically does not signal the bottom until after the fact. The TSI has been trending down overall since the stock entered its current downtrend. As long as the TSI does not significantly break above this trend line, the stock will continue to fall in the near-term.
The positive vortex indicator (VI) is at 0.8691 and the negative is at 1.0900. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. Currently the negative indicator is reprieved from its drop below one and has begun to move up once again at the same time the positive indicator is doing the inverse and it is dropping. This is a bearish indicator in the near-term.
The stochastic oscillator K value is 55.7084 and D value is 52.7752. This is a cyclical oscillator that is highly accurate and can be used to identify overbought/oversold levels as well as pending reversals and short-term activity. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the stock is trending up. When the D value is higher that the K value the stock is trending down. Even though this indicator is technically in the middle of the oscillation possibilities. The K value is about to drop below the D value signaling near-term bearish movement. As long as the D value is greater than the K, the stock will drop.
Considering the RSI, TSI, VI and stochastic levels, the overall direction clearly points to some sort of continued downward movement soon. Based on historical movement compared to current levels and the current position, the stock could drop at least 2% over the next 26 trading days if not sooner.
Decision Time For Kellogg's TechnicalsOn March 31, 2017, the Kellogg Company ( NYSE:K ) 20 day moving average (MA) cross below the 50 day MA. Historically this has occurred 82 times and the stock does not always drop. It has a median loss of 1.821% and maximum loss of 9.091% over the next 5 trading days.
When we take a look at other technical indicators, the relative strength index (RSI) is at 40.7957. RSI tends to determine overbought and oversold levels. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading declares the stock is slowly moving down.
The true strength index (TSI) is currently -4.5126. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock is moving down.
The negative vortex indicator (VI) is at 1.0516. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The current reading declares the stock is moving down.
The stochastic oscillator K value is 16.9329 and D value is 17.6418. This is a cyclical oscillator that is highly accurate and can be used to identify overbought/oversold levels as well as pending reversals. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the stock is trending up. When the D value is higher that the K value the stock is trending down. The current reading declares the stock is trending downward and has been due for a reversal the past five days.
Considering the moving average crossover, RSI, TSI, VI and stochastic levels, the overall direction appears to be heading down. Based on historical movement compared to current levels and the current position, the stock could lose another 0.48% over the next 5 trading days. The overall Macro trend is forming a wedge with the apex around mid-May. It is highly likely Kellogg will break out of this wedge before May. Based on the current readings, the break from the wedge could occur in the current downtrend. The determining factor will be when the stock crosses through the support line currently around 72.20. A strong break down with greater than 3 million in volume would lead to a deeper drop for the stock. If the support is not broken on this trip, a break above resistance (top yellow line) with volume could signify a stronger move up.
K long ideawith recent earnings beat and a small pullback we might see continuation to 78.00 level. I like because of recent price action since earnings plus the stochastics look ready to cross 80 level
