Mondelez International Inc. ( MDLZ) has surprised me to the upside. In my Feb. 16 review of the snack food and beverage producer I was positive on the shares but wrote that Mondelez "is not scheduled to report earnings until late April, so an upside breakout to new highs may not happen for a while. Keep MDLZ in your market minder for now."
Let's check the charts and indicators of Mondelez again.
In this updated daily bar chart of MDLZ, below, I can see that prices began a move higher in the middle of March. MDLZ is in a new uptrend and trades above the positively sloped 50-day moving average line and the positively sloped 200-day line. The On-Balance-Volume (OBV) line has been moving up the past 12 months and has made new highs along with the price action. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in bullish mode.
In this weekly Japanese candlestick chart of MDLZ, below, I can see a positive picture. Prices are in a longer-term uptrend as they trade above the rising 40-week moving average line. The weekly OBV line has been strong the past three years and supports the probability of higher prices. The MACD oscillator has crossed to the upside for a fresh outright buy signal.
In this daily Point and Figure chart of MDLZ, below, I can see a recent upside breakout and a potential price target in the $94 area.
In this second Point and Figure chart of MDLZ, below, I see the same upside price target of $94.
Bottom line strategy: I was asleep at the wheel when MDLZ made its upside breakout but I believe there are still more gains ahead. Aggressive traders could go long MDLZ at current levels. Risk to $66.50 for now. The $94 area is our price target.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
Is a crackdown on the cryptocurrency market the outlier that stock traders didn't see coming because they were focused on inflation and interest rates?
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.