Mondelez International (MDLZ) Stock Chart Analysis

This article is a Mondelez International (MDLZ) stock chart review and analysis.

Mondelez International is a huge conglomerate that has dozens of large companies under its massive umbrella.

Peeking under its umbrella of brands, I counted 18 different companies whose products I have personally consumed.

I did not include 1 or 2 companies in the total of 18 that I was unsure of.

Matter of fact, I have a couple of their products in my kitchen pantry as we speak. The belvita are a favorite snack of mine while I am on the boat doing a little bass fishing. The sun-dried tomato wheat thins are paired with a nice slice of Havarti cheese.

If you have not tried Havarti cheese, do yourself a favor and purchase a brick to takes some slices from to throw on your favorite cracker. Each slice is a little slice of heaven for cheese lovers, me included. Havarti cheese is one of the creamiest cheeses I have ever tried.

You can access the official website for Mondelez International here where you can check out all their companies as well as their investor relations page.

So what sort of price action can be anticipated from such a large conglomerate? Let’s take a look at some of its charts and see if we can find out!

MDLZ – 10 Year Monthly Candlestick Chart

This first chart is a 10 year monthly candlestick chart to analyze the longer-term trend for Mondelez International (MDLZ). Monthly charts are better for analyzing longer-term trends. And since most people are not day traders, they should spend the bulk of their time looking at weekly and monthly charts, not daily charts. I try to appease both the shorter-term traders and longer-term investors by providing the trends I see in both.

According to this 10 year monthly Mondelez International (MDLZ) stock chart, its share price appears to be developing a probable[s2If !current_user_can(access_s2member_level1)]………

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I look at some pullback areas to begin building a position in the stock as well as some trading strategies for both the shorter and longer-term.

If you are not a Trendy Stock Charts member, consider joining today! There are several different subscription plans available.[/s2If][s2If current_user_can(access_s2member_level1)] Symmetrical Triangle wave pattern of some sort. If that is the case, expect 1 more re-test of the lower trendline for the Triangle pattern. That means MDLZ’s share price could be breaking back down towards the $38 price level before breaking out and advancing higher again.

A break of the $38 area of the lower support line could be a bear trap developing. A potential bear trap will be identified by light selling volume on the break of the lower trendline from the Triangle.

However, if the break of the lower trendline happens on selling volume that is higher than the average trading volume, the odds increase significantly that MDLZ’s share price is heading towards the “maximum pain level”. The maximum pain level is around the $32 price area. A breakdown to the maximum pain level does not look as probable as the Triangle pattern which I have illustrated though.

A break above the upper trendline from the Triangle wave pattern that develops on heavy buying volume is a signal to purchase shares immediately. Make a 1/3 or a 1/2 scale-in purchase at that point rather than waiting for the pullback to develop.

MDLZ – $4 Trading Range

This last chart is a 1 year daily candlestick chart where I illustrate an approximate $4 trading range that MDLZ’s share price has been in for the past year. Since the width of the Trading Channel is approximately $4, any break to the upside or downside is going to go the width of the channel first. That provides for a $37.25 target on a downside break and a $49.25 price target on an upside breakout. Basically, a breakout to either side will represent an approximate 10% swing.

With decreasing buying volume and also decreasing buying momentum, it appears that in the shorter-term MDLZ’s share price is going to see a little bit of selling pressure possibly sending it towards the bottom of the channel.

As mentioned above, a breakdown from the Trading Channel is most likely heading towards the $37.25 price level based on the width of the Trading Channel. This $37.25 breakdown level is also about the same price level that is mentioned above for the Triangle wave pattern. The lower trendline for the Triangle wave pattern is around the $38 price area, right around the same price level for a breakdown from the Trading Channel.

This trading channel could provide several more months of constrained activity though before either a breakout or a breakdown occurs. While I did not discuss it on the monthly chart, the uptrend leading up to this consolidation period in the Trading Channel was approximately 7 years in length. To me, it would seem as if MDLZ’s share price may not be ready to break out from the Triangle pattern until towards the end of this year. It might take a couple of months to touch the lower trendline, but when it does you need to be ready to buy. That is where setting price alerts on your trading platform helps.

Mondelez International (MDLZ) Stock Chart Summary

This Mondelez International (MDLZ) stock chart review and analysis indicates that the $37 price level is starting to look more and more probable as a medium-term price target. Using a scale-in purchase system, 1/3 of the position would be purchased at this level.

A breakdown and MDLZ’s share price is headed towards the $32 price area where another 1/3 of the position would be purchased. After seeing a positive rebound develop and be underway, the last 1/3 scale-in purchase can be made. That will usually be at prices as much as 5% higher due to wanting to confirm the uptrend underway.

A breakout to the upside can be traded up to the $49.50 price area, or basically the $50 price level. However, based on the MACD Histogram’s decreasing buying momentum on the daily chart, the breakout to the downside looks more probable at this point in time.

Or you may wish to purchase 1/3 of your position at the bottom of the Trading Channel and use the Trading Channel’s 4 quadrants to trade the stock until a breakout occurs. Since everyone’s trading style is different, let me know if you have questions with anything or any of the charts.

Good luck trading!

On deck: International Business Machines (IBM)

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