After spending six months stuck deep in the red zone, processed food producer Kraft Heinz (KHC) has climbed back up the rankings in the SIA S&P 100 Index Report toward the boundary between the yellow zone and the Green Favored Zone. Yesterday, it finished in 26th place.
Back in March of 2020, a long-term downtrend in Kraft Heinz (KHC) shares bottomed out and was snapped in the summer of 2020. Since then, the shares have remained under accumulation and have been forming a large bullish ascending triangle base of higher lows below $43.50 resistance where a breakout would confirm the start of a new uptrend.
Measured moves from recent trading ranges suggest potential resistance tests near $42.50, $45.00, $47.50, $49.00, and then the $50.00 round number. Initial support appears near $38.25.
Kraft Heinz (KHC) has been under steady accumulation for the last eighteen months, steadily building an upward trend of higher lows and positive pattern completions. This month a correction quickly ended with only a 3-box reversal and the shares have launched into a new upleg with a bullish Double Top breakout.
Initial upside resistance appears at the June 2021 high near $43.35 where a breakout would confirm that the previous long-term downtrend has been broken, followed by $46.00, based on a previous support level. Additional resistance tests on trend appear near the $50.00 round number, then $55.00 and $59.50 based on horizontal and vertical counts.
With a bullish SMAX score of 9, KHC is exhibiting strength against the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.