The technical picture of the Kellogg Company stock (NYSE: K) on our 4-hour chart shows that from mid-April, the share price is moving lower, while trading inside a falling channel pattern. At the end of last week, K tested the lower side of the channel and rebounded from it. Even if the stock makes its way a bit higher, if it still finds it difficult to push through the upper side of the falling channel, lower levels could be met.
As mentioned above, a slight move north might bring the share price to the high of last week, at the 64.32 barrier, or to the intraday swing high of June 17th, at 64.65. Slightly above it runs the upper bound of the aforementioned channel, which if remains intact, may lead to a reversal back down. K could then drift back to the 63.57 hurdle, or even to the current lowest point of June, at 62.76. If there are still no new buyers near that price area, the stock may slide further, possibly aiming for the lower side of that channel.
The RSI and the MACD are currently pointing higher. However, the RSI is below 50 and the MACD, despite sitting slightly above the trigger line, remains well below zero. It seems that the two oscillators support the idea of seeing a slight correction higher in the near term, before another possible move down, as the indicators are still showing negative price momentum overall.
Alternatively, if the upper side of the channel breaks and the share price rises above the 65.50 barrier, marked by the high of June 15th, that may attract more buyers into the game, potentially opening the door for further advances. K could get lifted to the 65.84 obstacle, or even to the 66.65 zone, marked by the high of June 8th. If there is still enough buying interest around that area, the stock might get a boost and climb to the next resistance levels, at 67.05 and 67.22, marked by the highest point of June and the high of May 21st respectively.
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