Kellogg Company (K.US) - Possibility for long positions

Kellogg Company (K.US) Our expectations:
Chart - Weekly
Trend - Long
Correction to levels of historical diagonal and horizontal. These levels coincide with 50% Fibo.
Price Action - Gap
First Opportunity - entry at the end of the session if the gap remains
Second Opportunity - wait for a breakaway of the local horizontal resistance.
Stop: 58.00
First obstacle - resistance at $70
Second obstacle - resistance at &78
Third obstacle - H&S formation from the beginning of the year - the formation is confirmed and done as a correction
Fourth obstacle - 50/200 SMA - price under both MAs - negative signal
Demarker in oversold levels, reversed and headed for a breakaway of the 40 level
TD Sequential counted 9 - bullish signal

Alternative scenario: if the price goes under the horizontal and diagonal supports, we could seek for new short positions after a test of the breakaway.

Kellogg Company manufactures and markets ready-to-eat cereal and convenience foods in the United States and internationally. The company operates through U.S. Morning Foods, U.S. Snacks, U.S. Specialty, North America Other, Europe, Latin America, and Asia Pacific segments. Its principal products include cookies, crackers, savory snacks, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and veggie foods. The company also offers health and wellness bars, and beverages. It offers cereal products under the Kellogg’s brand name; and cookies, crackers, crisps, and other convenience foods under the Kellogg’s, Keebler, Cheez-It, Pringles, Murray, Austin, and Famous Amos brands. The company sells its products for grocery trade through direct sales forces, as well as use brokers and distributors. Kellogg Company was founded in 1906 and is headquartered in Battle Creek, Michigan.

Part of the S&P 500 Index, sector - Consumer goods / Processed Foods

A decline in the output of the sector during June and July

The company is part of the anti-Trump organization "resistance", as she acts as a donor. The organization is led by George Soros.

Altough the growing debts during the past 2 years, the revenue grows proportionally. This makes the company highly competative.

The Net income of the company showed growth during the last year, and the expectations are this tendency to continue.

At the end of last month the company changed its CEO, and at his place camo Steven Cahillane from the wellnes company Nature's Bounty. This came as a signal for a change in the development of the firm. The shift comes in the perspectives of the company, which will now focus on healthy foods.

Kellogg Company vs the main competitors:

Market Cap.
Kellogg - $21,543 B
General Mills - $29.56 B
Nestle SA - $254 B
The Kraft Heinz - $94
AS it can be shown on the chart, the hard summer affected even the giants in the sector.

Comparison with S&P 500:

Here the same thing can be seen. The company tracks the index, afterwards the hard moments came this year, after the election of Trump. There is a lot of distance to be covered.

As she is a part of the anti-Trump organization, all shocks with Trump's campain will be a positive for the company.

Jr Trader Alexander Kumanov

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