During Friday's Mad Money program Jim Cramer was skeptical about The Kraft Heinz Co. (KHC) , as the food maker could be running out of steam despite its Investor Day event scheduled for this week. Let's check out the price charts and the indicators.
We liked the charts on July 16 saying that "Traders could go long KHC at current levels or add to existing longs. Risk a close below $30 for now. The low $60's are our price target." The stock market is dynamic and things change so let's visit the charts again.
In the daily bar chart of KHC, below, we can see that prices rallied into the middle of August and then turned lower. KHC closed below the cresting 50-day moving average line and is now not all that far above the cresting 200-day moving average line.
The On-Balance-Volume (OBV) line has turned lower recently telling us that sellers of KHC have become more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has been weakening since early May and is now below the zero line in a sell.