As I starting doing last year around Q3 when the stock market was topping (and has yet to clearly take out those highs), I am turning my focus back to some of the beat-down, left-for-dead, blue-chips stocks with attractive risk/reward profiles that have constructive charts which appear to be potential bottoming plays. Keep in mind that this one, as well as some of the others on my radar that I may soon pass along as additional trade ideas, are in the same sector or industry. As such, make sure to leave some dry power if planning on moving into some of these defensive issue positions in the coming weeks+.
KHC (The Kraft Heinz Company) offers an objective long entry or starter position here (see weekly chart for scale in/buy zone), with a decent reaction likely if/when T2 is hit soon, as that price resistance currently comes in with the 200-day MAs on the daily chart below.
KHC daily April 16th
For those playing the long game (a longer-term swing or trend/position trade), KHC offers an objective long entry here and/or (if scaling in) down to the bottom of this buy zone, with stops based on a solid weekly close somewhat below the 20.00 long-term support. Longer-term trend targets are shown on this weekly chart. See daily chart for current swing targets.
KHC weekly April 16th
Regarding position sizing & portfolio diversification, keep in mind this trade is fairly correlated with the CPB (Campbell’s) trade posted yesterday, with additional trades in the Packaged Foods sector, including GIS (General Mills), likely to follow.