Despite taking a dive during yesterday’s trading session, the Mondelez International Inc. common stock (NASDAQ: MDLZ) continues to trade above a short-term tentative upside support line drawn from the low of March 11th. Even if we see another test of that trendline, as long as it stays intact, the upside scenario could remain on the table.
A failure to break below the aforementioned upside line could result in a rebound, as new buyers might take advantage of the lower price. MDLZ may then travel back to the 64.32 obstacle, or even all the way to the 66.33 zone, marked by the current highest point of April, where a temporary hold-up could happen. That said, if the buyers stay active, they might lift the stock to the 66.98 level, marked by the high of February 23rd.
The RSI and the MACD are currently pointing lower. However, the RSI remains above 50 and the MACD is still above zero and the signal line. Overall, the two indicators show positive price momentum, which may come inline with the scenario mentioned above.
Alternatively, if the previously discussed upside line breaks and the share price drifts below the 63.25 hurdle, marked by the low of April 18th, that could open the door for further declines, where the next possible target might be at 61.96. That zone is the current lowest point of April. If that support area fails to hold the stock from moving lower, that’s when we will aim for the low of March 24th, at 60.30.
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