Kellogg Will Leave a Bad Taste in Buyers’ Mouths

Recent buying drove K up, but stock is in obvious downtrend

   
Kellogg Will Leave a Bad Taste in Buyers’ Mouths

Kellogg Co. (NYSE:K) — This household name manufactures cereal and other foods in 17 countries and markets them in 180 countries. Brand names include Kellogg’s, Keebler, Cheez-It, Austin and Famous Amos.

Despite its name recognition, the company’s revenues are expected to remain flat in 2013 due to currency exchanges, and costs could rise because of higher crop prices due to poor weather conditions. Analysts expect earnings to fall year-over-year by 4%-10%.

Technically the stock is in an obvious downtrend with resistance beginning at its 200-day moving average at $50.56 to its bearish resistance line at about $51.60. Recent buying has driven the stock from a low of $46.33 to over $50.

If you own K, sell it at the market and look for better values. Traders may try to short the stock between $50.50 and $51.50 with a downside target of $44.

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Article printed from InvestorPlace Media, http://investorplace.com/2012/08/trade-of-the-day-kellogg-co-nyse-k/.

©2014 InvestorPlace Media, LLC

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