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Fan Yang

Kellogg Company (K) Maintaining a Bullish Reversal Outlook

Kellogg Co. $K has been in correction mode along with the general equities market in the past few weeks. But, I think it is still maintaining a bullish outlook as long as it holds above $66. 

K Daily Chart

(click to enlarge)

- Looking at the daily chart we can see that price action was bearish since July 2016 when price peaked around $87 a share.
- After driving down to almost $56 a share, a rally in May was able to finally make a higher high, breaking the pattern of lower highs, and thus suggesting a bullish reversal in play. 
 -Also, price crossed above the cluster of moving averages (200,100,50).

- Price found resistance at $75 and drove back down to about the $67 mark.
- Note a previous support pivot here. The whole $66-$67 area is a support/resistance pivot area. 
- If price can hold above this area, I would still have a bullish outlook on K.
- Also note that the 200-day SMA is providing support at the moment, which is a subtle bullish sign. 
- A climb back above $72 would probably be a part of a bullish attempt to test $75 again, with upside to the $78 area next. 
Bearish Scenario:
- If price fails to climb back above $72 and breaks below $66, we are probably going to see a deeper correction towards a common support/resistance pivot around $56-$58. 
- Note that a rising trendline might also coincide with this support area if price does eventually slide down to $56-$58. 

K Weekly Chart

(click to enlarge)

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