In another 'Executive Interview' segment of Mad Money Wednesday night, Jim Cramer checked in with the world's largest food maker, Nestle SA (NSRGF) , by speaking with Mark Schneider, the company's CEO.
Schneider said the world is restocking their pantries and Nestle's sole focus at the moment is keeping store shelves stocked with the essential products the world needs. This includes pet food which was already Nestle's best performing category for the year.
Outside of the coronavirus, Schneider said Nestle continues to focus on sustainable packaging.
Let's see what their charts look like and whether they are on a sustainable path.
In this daily bar chart of NSRGF, below, we can see that prices did decline last month with the broad market meltdown but the correction was fairly normal in size and duration. Prices have quickly rebounded and are retesting the underside of the flat 200-day moving average line.
The $106-$112 area might offer some selling resistance but the On-Balance-Volume (OBV) line has turned up and so has the Moving Average Convergence Divergence (MACD) oscillator.
In this weekly bar chart of NSRGF, below, we can see that prices corrected down to the top end of a previous consolidation zone in the $85-$75 area. Prices are below the 40-week moving average line which has not turned negative.
The weekly OBV line barely dips and the MACD oscillator is narrowing towards a new outright go long signal.
In this monthly bar chart of NSRGF, below, we can see the long-term trend from 2003 has been up. Strongly up and the recent decline has not broken that long-term trend.
In this Point and Figure chart of NSRGF, below, we can see that an initial upside price target of $128 is being projected.
Bottom line strategy: Nestle trades on various exchanges but on the "pink sheets" in the U.S. Trade it from the long side. Risk below $95 for now.