When we last looked at shares of Kraft Heinz (KHC) back on Sept. 14 we wrote that, "KHC has weakened since our last review. We have our sell stop recommendation at a close below $30 and that could be elected as the Point and Figure chart suggests a possible decline to the $28 area." Prices got close to $28 in late September and then started on a fresh uptrend.
Let's see what sort of strategy is needed now.
In the updated daily bar chart of KHC, below, we can see that the shares broke out over their August highs in February. KHC is trading above the rising 50-day simple moving average line and above the rising 200-day moving average line.
The trading volume has increased in the past two months and that is a positive relationship. The On-Balance-Volume (OBV) line is up from its September low but has largely moved sideways. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but the two moving averages that make up this indicator are right on top of each other -- a turn up is just as easy as a turn down right now.