Today's Roof Leaker Stock Is Mondelez International Inc Class A (MDLZ)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Mondelez International Inc Class A ( MDLZ) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Mondelez International Inc Class A as such a stock due to the following factors:

  • MDLZ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $284.4 million.
  • MDLZ has traded 1.1 million shares today.
  • MDLZ is trading at 2.14 times the normal volume for the stock at this time of day.
  • MDLZ crossed below its 200-day simple moving average.

'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.

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More details on MDLZ:

Mondelez International, Inc., through its subsidiaries, manufactures and markets snack food and beverage products worldwide. The stock currently has a dividend yield of 1.6%. MDLZ has a PE ratio of 33.3. Currently there are 8 analysts that rate Mondelez International Inc Class A a buy, 1 analyst rates it a sell, and 6 rate it a hold.

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