The Kraft Heinz Co. - (KHC) - February 19, 2021

by SIACharts.com

This one is a bit different from the stocks we usually look at in the Daily Stock Report. On what was a relatively quiet day in the markets, Kraft Heinz (KHC) staged an aggressive move upward in the rankings of the SIA S&P 500 Index Report, climbing 17 spots in one day to 41st place, up 44 spots from a month ago.

After last leaving the green zone in May of 2017, Kraft Heinz spent from late 2017 to early 2020 stuck in the red unfavored zone. Yesterday, the shares upward charge carried them back up into the Yellow Neutral Zone for the second time in the last ten months.

A major breakout is underway in Kraft Heinz (KHC) shares this week. Last year, a long-term downtrend bottomed out near $20.00 and after an initial rebound, the shares settled into a $28.50 to $35.50 range where it continued base building. This week, the share have broken out over $35.50, completing a bullish Ascending Triangle pattern and signaling the start of a new upleg.

Initial upside resistance appears in the $42.50 to $43.00 area where two measured moves converge with an early 2019 peak, then the $50.00 to $53.75 area where multiple measured moves and a big round number cluster. Initial support appears at the $35.50 breakout point.

Kraft Heinz (KHC) has come under renewed accumulation recently. A breakout earlier this month over $36.00 completed a bullish Spread Triple Top pattern, ending a consolidation phase and signaling the start of a new advance.

Next potential upside resistance appears near $43.45 where a horizontal count, downtrend line, and previous column high converge, followed by $46.10 based on a horizontal count, the $50.00 round number, and $55.10 based on a vertical count up from a previous breakout pole. Initial support appears in the $34.95 to $35.65 area where a 3-box reversal, round number and recent breakout point cluster.

With a bullish SMAX score of 7, KHC is exhibiting near-term strength against the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

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