The company just posted results that included 7.7% organic growth.
Schneider said Nestle is seeing a recovery both in China and in their out-of-home products that are sold to restaurants and hotels, but the company's in-home business still remains strong.
When asked about their sustainability efforts, Schneider said there's a business case emerging for sustainability. Customers are demanding it, he said, and government regulations regarding the environment are only going to get stricter over time.
Turning to the company's surging coffee sales, which were up 17% organically, Schneider said that the gains represent both market share wins and increased consumption at home, where people are still spending most of their time.
Let's put up a pot of coffee and take a look at the charts.
In this daily bar chart of NSRGF, below, we can see that prices were in a downtrend from August to late February. Prices turned higher in early March and are now trading above the rising 50-day moving average line and the rising 200-day moving average line. Heavy trading volume in January through March suggests we may have seen a shift from weak hands to strong hands.
The On-Balance-Volume (OBV) line finally bottomed in March and the Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly bar chart of NSRGF, below, we can see the past three years of price action. There have been some lengthy corrections but the major trend is up. Prices are trading above the rising 40-week moving average line.
The weekly OBV line shows strength from February and the MACD oscillator gave a cover shorts buy signal and is close to an outright buy signal.
In this daily Point and Figure chart of NSRGF, below, we can see that prices have broken out on the upside with a potential $155 price target.
In this weekly Point and Figure chart of NSRGF, below, we used close only price data and a traditional scaling. Here a $164 price target is indicated.
Bottom line strategy: Traders could go long NSRGF at current levels risking to $114 for now. Add above $123. The $155 to $164 area is our price objective.