Since December 26th, the Mondelez stock (NASDAQ: MDLZ) had enjoyed a steep (more than a 45-degree) acceleration of its share price, which travelled from around 38.80 to 48.43 in just two months’ time. But on Monday, MDLZ has finally broken the short-term upside support line, taken from the low of December 26th. From there onwards, the stock started moving sideways for the rest of the week. For now, we remain bearish over the short-term outlook, but will await for a confirmation break of one of our key support areas before getting comfortable with the downside.
A drop below Monday’s low, at 46.52, may force investors to flee the stock, allowing it to slide towards its next potential area of support, at 45.78, which is the low of February 7th. Of course, if initially that area holds and doesn’t allow the share price to depreciate more, we may see a correction back up a bit. But if investors do not see much value in the stock even at that price, MDLZ could slide once again. If this time the 45.78 obstacle is not able to withstand the negative pressure, slightly below sits another possible support zone, at 45.45, which is near the low of February 1st and marks the high of December 4th.
Looking at our oscillators, the RSI and the MACD, they are not giving much hope to investors, at least for now. The RSI is below 50 and points to the downside. The MACD has now entered negative territory and sit below its trigger line, at the same time pointing lower.
Alternatively, if investors see some potential in MDLZ even at current price, this might lift the stock a bit higher. But in order to trust the bullish technical scenario, we would like to see the share price breaking above the 47.44 barrier first, as this might clear the path to higher levels, which were tested not so long ago. This is when we will target the 47.90 obstacle, a break of which could push the stock further north to test the 48.43 level, marked by the high of February 21st.
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