Choppy Waters Behind It, Mondelez on Course for Breakout

 | Apr 20, 2017 | 3:40 PM EDT
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Mondelez International (MDLZ) looks like it is poised to make an upside breakout soon -- hard to believe after months and months of choppy sideways trading. Give me two paragraphs to run through the indicators and see if you agree with me.

In this daily bar chart of MDLZ, below, we can see the choppy or erratic price action we noted earlier. I am not sure how anyone could trade this stock. The up-and-down moves seem to come without warning. Since January, the price action is more "understandable." This month, MDLZ is above both the 50-day and 200-day moving average lines. Prices are near the top of a resistance area around $45.50. The On-Balance-Volume (OBV) line is not out of the woods, but it has firmed this month. The Moving Average Convergence Divergence (MACD) oscillator just turned above the zero line for an outright go-long signal.

In this weekly chart, above, we can see a large sideways trading range for MDLZ that has narrowed down to an apex. Prices are slightly above the 40-week moving average line, but they are above. A weekly close above $46 looks like it will break prices out on the upside. The weekly OBV line has been rising (slightly) the past three years and should be very bullish for prices. The weekly MACD oscillator is above the zero line and looks like it is about to cross to the upside and a fresh go-long signal.

In this Point and Figure chart of MDLZ, above, it looks like a trade at $46.50 will be a breakout and should allow us some pretty bullish price targets.

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