Kellogg Company (NYSE:K) at a price of $64 is trading at equilibrium. The moving averages converged, and the price chart indicates reduced volatility in the stock. Investors will be keen to note what direction the stock takes in the coming days.
Kellogg Company has been an investment candidate for value investors. The wide moat company has been keen on its organic growth strategy that prioritizes divesting from non-core sectors and inventories. As a consumer defensive stock, Kellogg looks forward to a strong year in the capital markets as well as financial performance.
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While the stock is expected to enjoy strong financial performance, the company faces low growth expectations. The expectation of low growth translates to low momentum in the stock markets.
Investors taking a position in the company should therefore not expect major price movements. Nonetheless, being a mid-cap business means that even small price movements can create huge opportunities for the keen investor.
Kellogg’s breaks through $64 equilibrium, sets for new highs
All key moving averages converge at $64. Kellogg Company begins a bullish trend as the MACD crosses above signal. However, the stock will be trading on low momentum. The baseline support for the stock is at $56, with the reference support at $64.
The resistance point is $70. This analysis expects the valuation to test the resistance, but it is unlikely to break through the resistance.
Summary
Kellogg is an attractive stock for value investors. The share price just crossed above the $64 equilibrium price and is expected to test the resistance at $70. Kellogg Company is a buy.
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