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Kellogg Company Message Board

  • luckyone581 luckyone581 Oct 27, 2008 12:33 PM Flag

    K Chart Evaluation & Buy Mention

    K (Friday close at 48.25)

    K is one of the few elite blue-chip companies that has been able to maintain itself in a weekly up-trend in spite of the collapse of the stock market. In addition, the stock is in an industry (consumer staples) that most analysts predict will hold value during this economic debacle.

    K has not yet broken any previous weekly closes of consequence and has been able to maintain itself above the 200-week MA as well. In addition, the stock has re-tested successfully the low made two weeks ago and is in the process of generating a second successful re-test of that level, if the stock is able to close in the green on Monday.

    On a weekly closing basis, support is very strong between 47.26 and 47.59 from two previous major weekly low closes. Support is also strong at 48.49 from the most recent low weekly close as well as from the 200-week MA. On a daily closing basis, support is very strong at 48.31, again at 47.89, and major at 47.50. On an intra-day basis, support is major at 45.25 and very strong between 46.25 and 46.68. On a weekly closing basis, resistance is decent at 50.50 and then again a bit stronger at 52.00. Major resistance up at 54.22. On a daily closing basis, there is very minor resistance at 49.90 from a previous high close as well as from the psychological level at $50. Above that, there is decent resistance at 50.85 and then quite strong at 52.27.

    It is evident that the daily and weekly closing support between 47.50 and 48.00 will be very difficult to break without a major collapse in the indexes. In addition, K is still in a weekly up-trend that may or may not be coming to an end, but nonetheless, it is highly unlikely that after the indexes have already broken down so dramatically that this stock would now get into a downtrend. The probabilities favor a sideways phase with a possible trading range between $46 and $52 for the next few weeks and/or months.

    It is likely that this coming week K will be generating a drop below last week's low of 47.25 as a re-test of the intra-day low seen 2 weeks ago at 45.25. Drops down to the mid-to-high 46's this week, seem possible and perhaps even probable.

    Purchases of K between 46.70 and 47.00 and using a stop loss at 45.15 and having an objective of 52.77 will offer a risk/reward ratio of almost 4-1.

    My rating on the trade is a 7.5 (on a scale of 1-10 with the strongest probability rating being 10).

    My name is Tony and I am a chartist. I have been trading for close to 30 years. In the 80's I was a broker/trader/analyst for Merrill Lynch, Dean Witter, and Pru-Bache.

    I offer an inexpensive chart evaluation service on stocks of your choice through membership to my website and message board.

    “When or where do I get in? When or where do I get out? What is the trend for the next week? For the next 3 months? Where are the strong buyers and where are the strong sellers (based on past action)? What is the risk/reward ratio on my trade (based on chart objectives)? What looks good right now (chart-wise)?”

    These are some of the questions that I try to answer through chart evaluation.

    I offer a monthly service that includes a weekly newsletter with chart evaluations on 4 stocks that I believe have attractive chart patterns and good risk/reward ratios as well as 1 chart evaluation per week on a stock of your choice. The service also includes membership to a message board where daily updates on all stocks and stock indexes are given. Cost of the service is only $27.95 per month.

    If you are interested in learning more about the service, please check out my website address on the Yahoo message board profile area.

    If the paid service is not something you are interested in, I do distribute a “free” newsletter every week that gives a chart evaluation on the stock indexes. If anyone would like to receive it please send me an email to the email address shown in the profile area.

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    • $ 27.95 per month. hope nobody paid that for a scalp play,,,,how about some homeruns? heck daytraders post them for free every single day on active sites.

      robot spammer with poor editing lol

    • wallstreet isnt buying your pump,,,,,but they are buying the taxfree etf/funds. they will prolly double before anyone looks for them.

    • I just liquidated the long positions at 52.89. Profit on the trade of $539 per 100 shares minus commissions.

    • I stepped up an purchased K today at 47.50 as the drop down to 47.24 was sufficient to fulfill the chart picture.

      I don't expect the stock to do much today and tomorrow, but this week is the end of the month and the indexes will likely rally toward the latter part of the week as window dressing usually occurs at the end of the month.

      As it is, the indexes attempted last week and even this morning to go down to the previous lows and break them. They have not been successful and the panic selling and forced hedge fund liquidations are just about over. With no new lows in the indexes, I do believe the market will start a correction phase upward this week..........probably lasting from 2-3 weeks. Minimum objective on the upside in the
      DOW would be 9057, with an outside possibility of generating a rally up to 10263.

      K is likely to be one of the better supported stocks during this phase.

69.44+0.20(+0.29%)Oct 9 4:01 PMEDT