Kellogg's Technicals Continue To Point Down
Kellogg Company has been in a clearly defined downward trend since February 2017. On April 26, Kellogg broke down and away from the wedge pattern it had been in. From this point, the stock broke down to around 68.60 which fell in line with a support trend line that began February 2014. The current resistance line is steadily dropping. The projected future movements are highlighted below.
When we take a look at other technical indicators, the relative strength index (RSI) is at 44.6048. RSI tends to determine trends, overbought and oversold levels as well as likelihood of price swings. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading has the stock relatively neutral although it recently bounced up from oversold territory when the stock dropped around April 26.
The true strength index (TSI) is currently -18.9951. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock has been trending down. Due to the delayed correlation in the movement of the stock, this indicator typically does not signal the bottom until after the fact. The TSI has been trending down overall since the stock entered its current downtrend. As long as the TSI does not significantly break above this trend line, the stock will continue to fall in the near-term.
The positive vortex indicator (VI) is at 0.8691 and the negative is at 1.0900. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. Currently the negative indicator is reprieved from its drop below one and has begun to move up once again at the same time the positive indicator is doing the inverse and it is dropping. This is a bearish indicator in the near-term.
The stochastic oscillator K value is 55.7084 and D value is 52.7752. This is a cyclical oscillator that is highly accurate and can be used to identify overbought/oversold levels as well as pending reversals and short-term activity. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the stock is trending up. When the D value is higher that the K value the stock is trending down. Even though this indicator is technically in the middle of the oscillation possibilities. The K value is about to drop below the D value signaling near-term bearish movement. As long as the D value is greater than the K, the stock will drop.
Considering the RSI, TSI, VI and stochastic levels, the overall direction clearly points to some sort of continued downward movement soon. Based on historical movement compared to current levels and the current position, the stock could drop at least 2% over the next 26 trading days if not sooner.
When we take a look at other technical indicators, the relative strength index (RSI) is at 44.6048. RSI tends to determine trends, overbought and oversold levels as well as likelihood of price swings. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading has the stock relatively neutral although it recently bounced up from oversold territory when the stock dropped around April 26.
The true strength index (TSI) is currently -18.9951. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock has been trending down. Due to the delayed correlation in the movement of the stock, this indicator typically does not signal the bottom until after the fact. The TSI has been trending down overall since the stock entered its current downtrend. As long as the TSI does not significantly break above this trend line, the stock will continue to fall in the near-term.
The positive vortex indicator (VI) is at 0.8691 and the negative is at 1.0900. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. Currently the negative indicator is reprieved from its drop below one and has begun to move up once again at the same time the positive indicator is doing the inverse and it is dropping. This is a bearish indicator in the near-term.
The stochastic oscillator K value is 55.7084 and D value is 52.7752. This is a cyclical oscillator that is highly accurate and can be used to identify overbought/oversold levels as well as pending reversals and short-term activity. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the stock is trending up. When the D value is higher that the K value the stock is trending down. Even though this indicator is technically in the middle of the oscillation possibilities. The K value is about to drop below the D value signaling near-term bearish movement. As long as the D value is greater than the K, the stock will drop.
Considering the RSI, TSI, VI and stochastic levels, the overall direction clearly points to some sort of continued downward movement soon. Based on historical movement compared to current levels and the current position, the stock could drop at least 2% over the next 26 trading days if not sooner.
All forecasts are based on analysis of past behavior. Prior movements are not always indicative of future movement. Develop the theory, test the theory. Do your own research. Nothing in this analysis constitutes advice. YouTube For More. Good luck!!
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