Kellogg Company Stock Code K.NYS
Outlook
Price had a sharp drop over a 3 day’s period but by 26 March price has started a recovery and has recovered to the edge of the cloud by 6 April. However price was unable to move above the cloud and has a 3-day decline since trying to break above the cloud. Both Base and Conversion lines are below the cloud, which is a hint of a bearish trend. Lagging Span is also below the cloud, which confirms the bearish trend. MACD is still bearish with both its lines below the zero line. The fast line is approaching the zero line but could be turning down, which is a hint of a lack of upward momentum. If price were to stay below $62.42, it is likely to decline to $56.80.
Strategy
$62.30 Short Sell
$56.85 Price Target
$65.05 Risk Management Stop
3 weeks Trade Duration
Chevron Corporation Stock Code CVX.NYS
Outlook
Price declined to a low of $51.60 on 19 March and has since recovered higher to close near $86.00 last night. Conversion and Base line had a bullish crossover but price is still below the cloud. This Conversion/Base lines crossover could be a weak bullish signal which may not be able to override the main bearish trend. Lagging Span confirms the bearish trend as it is below price of 26 periods ago and also below the cloud. There is also a big price gap from $88.01 to $93.42. Unless price can move above $93.42, the trend is still bearish. MACD is also bearish with both its lines below the zero line. We do not think price can go above the upper limit of the gap. We think the gap is likely to cap price rally and bring about another decline to $66
Strategy
$90.90 Short Sell
$68.30 Price Target
$95.20 Risk Management Stop
3 weeks Trade Duration
