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Packaged food producer Mondelez International (MDLZ) has been steadily sinking down the rankings in the SIA S&P 100 Index Report for over a year. It left the green zone in July of 2023 bounced around the yellow-red zone boundary for a few months and has consistently been in the Red Unfavored Zone since March.
Yesterday, MDLZ dropped another 2 spots to 76th place, it is down 7 spots in the last month and 25 positions in the last quarter. Since leaving the green zone last summer, Mondelez is down 5.5% while the S&P 100 Index is up 22.8%. Candlestick Chart Shows Renewed Distribution. Back in February, Mondelez International (MDLZ) shares failed to break through resistance near $76.00, completing a big Double Top, which in Candlestick charting is a major bearish signal. Since then, the shares have been under renewed distribution, with a new downtrend of lower highs emerging. MDLZ recently fell back under its 10-week moving average which is also technically troubling.
Currently, MDLZ is testing initial support in the $65.00 to $66.00 range. A failure there would confirm the start of a new downtrend with next potential support near $60.00, then $52.50 based on previous lows. Initial resistance on a bounce has dropped toward $71.00 based on a new downtrend line.
Point and Figure Looks Stuck In a Trading Range. A big rally in Mondelez International (MDLZ) shares up off of the 2022 market bottom stalled out in May of 2023 and since then, the shares have been grinding sideways.
Following an initial correction that triggered a bearish High Pole Warning, the shares rallied between November and February but were unable to break out to a new high, confirming resistance near $76.55.
In recent weeks the shares started to backslide, staged a 3-box bounce and are testing initial resistance near $72.15, with more possible at the previous highs near $76.55. Previous column highs and lows suggest potential downside support near $65.30, $62.80, $59.15 and $53.60.
With a bearish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 5 out of 10, MDLZ is exhibiting short-term weakness against the asset classes.
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