Kellogg Breaking Down With More To Go

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Kellogg daily

Kellogg was a stock I highlighted back in December, the 16th to be precise, as one for the bears, trading at the time at $61.45 per share. Since then we have seen the stock move lower and in yesterday’s trading session sank through the psychological $60 per share level to end the day at $59.37. You can read the analysis here: Snap, crackle…………then pop for Kellogg

There are several ways to benefit from a falling stock, one of which is to short through your broker where the stock is borrowed from another investor and lent to you for the duration of the trade. Remember, however, if you are holding this stock and the company declares a dividend you will be responsible for its payment. In addition, there can be extra costs from your broker. The alternative is with options by buying puts which increase in value as the stock falls.  The advantage of buying options is your risk is known and fixed from the outset.

There is plenty more to come from this stock, and with the strong ceiling of resistance now in place at $61.25 and denoted with the blue dashed line, coupled with low volume on the VPOC histogram, the stock is likely to go lower and the downside levels to watch are $59 which is immediately ahead and longer-term $52 which is last May’s low.

Disclaimer: Futures, stocks, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in ...

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