Kellogg declined from US$87.16 in July, 2016 (not shown) to US$56.40 in May, 2018 (A), had a recovery rally to US$74.98 later the same year (B) and then settled in a large multiyear triangle pattern (dashed lines). The recent rise above this formation confirms the breakout and suggests the start of a new up-trend toward higher targets (C).
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. There is good support near ±US$66; only a sustained decline below the 40wMA (currently near US$65) would be negative.
The rise above the triangle pattern signals Point & Figure targets of US$84 and US$89. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst ofthe Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
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Monica Rizk