In his Real Money column "Let's Talk About How Much a Company Is Spending" Jim Cramer said not all spending is good spending in the eyes of Wall Street. He said that investors cheered when snack maker Mondelez International Inc. (MDLZ) increased their spending. After the close of trading Wednesday, Mondelez released its fourth-quarter numbers and the stock gapped higher Thursday and surged till the close.
Let's spend a little time with the charts of the snack company before the Super Bowl and hours of chowing down on things like Ritz and Triscuit.
In the daily bar chart of MDLZ, below, we can see that prices broke out on the upside from an eight-month consolidation pattern. Prices gapped higher and closed at the top of a large daily bar -- a strong bullish statement. Volume surged too. MDLZ is firmly above the rising 50-day moving average line and the rising 200-day moving average line.
The On-Balance-Volume (OBV) line moved sideways with the sideways price action but began to rise from November as traders and investors became more aggressive. The OBV line is close to making a new high for the move up and that would help to confirm the price gains.
The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since December and it looks like it just made a new crossover to the upside.