Flowers Foods Gets a Lift as I Stray from My Atkins Diet

 | Feb 23, 2018 | 10:00 AM EST
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Struggling to stay on the Atkins Diet? Then do not look at these charts of Flowers Foods, Inc. (FLO) , the maker of Wonder Bread, Tastykake and Nature's Own baked goods. The charts are looking especially attractive as I just skipped the most important meal of the day.

In this daily bar chart of FLO, below, we can see an uptrend in place since July. Drawing an uptrend line may be hard but the pattern is there with higher lows and higher highs. Prices are above the rising 50-day moving average line and the 200-day. A bullish golden cross of the 50-day and 200-day averages can be seen in November.

The On-Balance-Volume (OBV) line has been rising since June and recently made a new high to confirm the new price highs. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in a bullish configuration. There is some slight narrowing of the moving averages that make up this indicator but that may not lead to a crossover.

In this weekly bar chart of FLO, below, we can see a two-year base pattern. The 2017 high at $21 is the key breakout level. Prices are above the slightly rising 40-week moving average line. The weekly OBV line turned higher in September and the MACD oscillator on this time frame is bullish.

In this Point and Figure chart of FLO, below, the breakout is at $20.43. An upside price target of $26.33 is indicated.

Bottom line: Hide the scale and try to buy FLO closer to $20.50 or on strength above $21.50 risking below $19.50. Look for gains to the $26-$27 area.

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