• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Spice Maker McCormick Is Adding Some Heat to the Charts

Shares have rebounded smartly to challenge the declining 50-day moving average line.
By BRUCE KAMICH
Apr 06, 2020 | 11:38 AM EDT
Stocks quotes in this article: MKC

During Friday's Mad Money program Jim Cramer talked about investing and that, sometimes you have to take the good with the bad. Not every stock is a guaranteed winner.

Cramer went on to say that the only winner among the "good-and-bad" stocks was spice maker McCormick & Co. (MKC) , which announced that it's losing business as restaurants close, but gaining it back in spades as consumers do a lot more cooking at home and require more spices and hot sauce.  

Let's check out the latest charts and indicators. We looked at MKC in early February, where we wrote, "While it looks like MKC could move higher in the long-term, the problem is the weakness indicated in the short-run." Now that the short-run weakness is behind us, let's check the charts again.  

In the daily bar chart of MKC, below, we can see that prices made their nadir around the middle of March along with the movement in the broader market. The shares have rebounded smartly in recent sessions to challenge the declining 50-day moving average line. Chart resistance does not look like it will be a potential problem until the $160-$165 area.

The daily On-Balance-Volume (OBV) line shows a nice bottom and turns higher as the line has gone from aggressive selling to aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator crossed to the upside for a cover shorts buy signal and is on its way back to the zero line for an anticipated outright buy signal. 

 
In the weekly bar chart of MKC, below, we can see the deep correction but the indicators are in pretty amazing shape. The 40-week moving average line only turned lower in March and the OBV line shows only a minor dip.
 
The weekly MACD oscillator is narrowing toward a cover shorts buy signal. 
 
 
In this daily Point and Figure chart of MKC, below, we can see how the chart is projecting a potential upside price target around $175.
 
 
 
Bottom-line strategy: I haven't been out to the supermarket to see what is going on in the spice section but I won't be surprised if the shelf is bare but soon to be restocked. The charts of MKC look bullish and traders should approach from the long side risking a close below $139 for now. Our initial target is the $175 area. 
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Food & Staples Retail | Mad Money | Coronavirus

More from Stocks

Verizon: The Risk Is to the Upside

Stephen Guilfoyle
Mar 1, 2021 11:00 AM EST

There is potential to turn VZ from a stable telecom into a 'growthy' type name.

There's an Oversupply of Positive Action Right Now

James "Rev Shark" DePorre
Mar 1, 2021 10:39 AM EST

The longer this continues, the more anxiety there will be about being underinvested.

Rocket Companies Is Not Ready to Blast Off

Bruce Kamich
Mar 1, 2021 10:36 AM EST

The company went public seven months ago.

The Ongoing Hunt for Deep-Value Stocks Turns Up 3 Candidates

Jonathan Heller
Mar 1, 2021 10:30 AM EST

American Outdoor Brands, Fonar Corp. and Suralign Holdings present value investing opportunities.

Market Bounce Is at Hand - But Insider Selling Intensifies

Guy Ortmann
Mar 1, 2021 10:13 AM EST

Breadth remains negative.

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.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:09 AM EST GARY BERMAN

    Monday Morning Fibocall for 3/1/2021

    Always a good idea to know where our bounce zones ...
  • 11:51 AM EST REAL MONEY

    Watch Bob Lang and Doug Kass Discuss Short-Selling!

    Bob Lang and Doug Kass with an engaging and educat...
  • 11:32 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Navigating a Market Correction
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login