Kraft Heinz Co (KHC) has been uptrending for several years. On its high in August, however, a negative divergence appeared on its weekly chart and, as a result, KHC sideways consolidated for the past 8 months. The good news is that it appears to be consolidating in a bullish cup with handle continuation pattern. A handle forming down to the rising 20 week EMA could provide solid reward to risk entry for those interested in a consumer staples company that currently yields 2.91%. Here's the chart:
Happy trading!
Tom
About the author:
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.
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