This Stock Looks Gggggggggggreat

On Wednesday, we looked at the strong uptrend confirmed with the solid trendline in place for Caterpillar (CAT).

Today, we’re going to take a look at Kellogg Co. (K).

K produces convenience foods — including the greatest cereal of all time, Frosted Flakes. You may disagree with Frosted Flakes being the greatest cereal of all time… and that’s OK, it only means you haven’t eaten enough of it!

Stocks such as K don’t get much attention from retail traders because they don’t usually see the huge moves associated with technology stocks.

The truth is, these types of stocks can have PowerTrend signals as well, and sometimes the lower volatility is welcome.

Let’s take a look at K’s daily chart below:

chart

K zipped out of its upper Keltner Channel in late July, but has since pulled back to test the midline of that channel, as well as put in a third test of a trendline.

The stock has started its bounce off that trendline, and since it’s still inside the upper Keltner Channel, it can start being watched for a buy signal.

See ya tomorrow!

Trade Smart,

Michael Saul
Analyst, Chart Of The Day

Michael Saul

Written By Michael Saul

Michael Saul has been trading the financial markets since the mid-1990s. He head first into studying price charts, devouring everything on technical analysis that he could get his hands on. Then, he moved on to trading stocks in 1999, and started trading options in 2000. The one thing he’s discovered through it all is you can never stop looking for new ways to gain an edge in the market.