Kraft Heinz CO (KHC) - After bear flag long move potencial
Updated
Almost everyone has noticed the bad news about the KHC, which is owned by the legendary investor Warren Buffet. The fundamental analysis could still point to further weakness, but the technical analysis might be a bit more optimistic.
We can see some nice patterns on the shorter timeframes (1H-4H). After the big drop, a consolidation triangle had formed, which was broken to the downside, thus the bearish trend was confirmed. Currently, there is a bearish flag, so I guess the price could go a bit lower and test the green area. There is still the possibility of a double bottom, but there is also a chance for a smaller rally from these levels.
The green area should be a very strong S/R area, because of the1.27 Fibo -> this could mean a mid-term bottom has formed here.
There is also the RSI bullish divergence and the so-called Bullish Three Drivers pattern. Plus, the market is Oversold
BUY AREA - GREEN ZONE
TP and SL will be revealed after the trade is active.
It could be a good technical trade with a solid RRR. BUT, we have to keep in mind that the poor fundamental situation of this company could trump the technical analysis. This stock has some problems but it is still a great company with more than 200 brands.
We can see some nice patterns on the shorter timeframes (1H-4H). After the big drop, a consolidation triangle had formed, which was broken to the downside, thus the bearish trend was confirmed. Currently, there is a bearish flag, so I guess the price could go a bit lower and test the green area. There is still the possibility of a double bottom, but there is also a chance for a smaller rally from these levels.
The green area should be a very strong S/R area, because of the1.27 Fibo -> this could mean a mid-term bottom has formed here.
There is also the RSI bullish divergence and the so-called Bullish Three Drivers pattern. Plus, the market is Oversold
BUY AREA - GREEN ZONE
TP and SL will be revealed after the trade is active.
It could be a good technical trade with a solid RRR. BUT, we have to keep in mind that the poor fundamental situation of this company could trump the technical analysis. This stock has some problems but it is still a great company with more than 200 brands.
Note
We saw a bounce and there is potential of double bottom pattern but we need to see breakout of blue resistance (horizontal line). Signal will be valid after breakout and confirmation.Note
After EMA 200 breakoutNote
Double bottom confirmed.
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