The Consumer Staples Bubble Is Popping
Kimberly-Clark (KMB) ($103.40 vs. $95.66 on March 25) has been downgraded to hold from buy after setting a multi-year high at $106.54 on April 19. The weekly chart profile is positive but extremely overbought with the five-week MMA at $99.08. My quarterly value level is $98.05 with a weekly pivot at $102.86. Investors should book profits on this parabolic stock given the downgrade.
Coca Cola (KO) ($42.15 vs. $40.04 on March 25) still has a buy rating and set a multi-year high at $42.96 on April 23. The weekly chart profile is positive but overbought with the five-week MMA at $40.60. My monthly value level is $36.15 with a semiannual pivot at $42.26.
Pepsico (PEP) ($82.34 vs. $78.64 on March 25) has been downgraded to hold from buy and set a new multi-year high at $84.43 on March 23. The weekly chart profile is positive but overbought with the five-week MMA at $79.20. My annual value level is $79.02 with a weekly pivot at $82.66. Investors should book profits on this parabolic stock given the downgrade.
Procter & Gamble (PG) ($77.12 vs. $77.27 on March 25) still has a buy rating and set a multi-year high at $82.54 on April 23. The weekly chart profile shifts to negative on a close this week below its five-week MMA at $77.80. My annual value level is $75.13 with an annual pivot at $78.73 and monthly pivot, now a risky level at $79.66. If this stock ends the week below its last week low at $78.85 it would be a key reversal on the weekly chart, which is a sign of a popping bubble.
At the time of publication the author held no positions in any of the stocks mentioned.
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