Stock of the day: Mondelez

This week’s correction on the stock market opened a few interesting bearish opportunities. In today’s piece, we are discussing Mondelez, who had a third consecutive red session yesterday and, consequently, the price managed to break the key mid-term support.

Mondelez had been climbing higher since the beginning of October but as of the start of December, the price stopped advancing higher and started moving sideways. MDLZ got stuck between the support at 65.5 USD and the resistance at 68.3 USD. As it often happens, the breakout had to show us the way. In this case, the breakout happened on Wednesday and was to the downside. Many traders were waiting for this opportunity as after the breakout, the price accelerated without hesitation. There was not much of a defense happening here.

With all that, the sentiment on Mondelez is negative and most probably, the price will soon touch 38,2%, or even 50% Fibonacci. Maybe not today, as Friday will probably bring us a bullish correction, but it seems like a pretty reasonable plan for the weeks to come.