On Thursday the company announced the acquisition of the European Chipita brand for $2 billion.
Van de Put first talked about the Mondelez approach for environmental and social governance, or ESG. He said they take a differentiated approach, focusing only on the areas where they can have a big, measurable impact. In other areas, they are open to collaboration with partners and governments.
As for the Chipita acquisition, Van de Put said the deal gives Mondelez access to a $65 billion market in cakes and pastries and is the perfect complement for their other brands throughout Europe.
When asked about the snacking trend, he said he thinks snacking is here to stay. People prefer snacking and eating smaller meals, he said, and as mobility increases, snacking will get back on the road.
We reviewed the charts of MDLZ on May 24 ahead of earnings and wrote that "I have no special knowledge of MDLZ's earnings, which are due out Wednesday. Traders should continue to hold previous long recommendations but raise sell stops to $60 from 'a close below $57'. Our price targets now are $73 and then $88."
Let's check on the trends on the charts again.
In this updated daily bar chart of MDLZ, below, we can see that prices have stalled around the $64 area. The slopes of the 50-day moving average line and the 200-day moving average line remain positive. The On-Balance-Volume (OBV) line rises to a late May high.
The OBV line has started to turn lower and that means that sellers have become more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside giving us a take profits sell message.
In this weekly Japanese candlestick chart of MDLZ, below, we can see some subtle clues that prices may have made a high for the moment. The recent candles show us a doji followed by a bearish (red) candle. The doji tells us that buyers and sellers are in balance while the red candle tells us that bears are getting the upper hand.
The indicators are still positive with a rising 40-week moving average line. A rising OBV line and a bullish MACD oscillator.
In this daily Point and Figure chart of MDLZ, below, we can see a potential price target in the $73 area.
Bottom line strategy: I currently do not see MDLZ declining much so a sideways correction could unfold before renewed gains. Continue to hold longs with a $60 stop loss order.