Trade of the Day” for Thursday, 5/9

Note from Daily Trade Alert: We’re always on the lookout for high-quality trade ideas that our readers can profit from. That said, we’re thrilled to announce that each trading day in the month of May we’ll be offering you what we call our “Trade of the Day.” This trade idea comes courtesy of one of the most respected traders we know: Invested Central Chief Market Strategist and StockCharts.com contributor Tom Bowley. In short, Tom has taught thousands of traders around the world how to analyze the markets and make money trading. We’re thankful he has agreed to share his ideas with Daily Trade Alert readers and we’re confident you’ll benefit from his insight. Without further adieu, here is today’s “Trade of the Day”…

Mondelez International (MDLZ)

Mondelez (MDLZ)

 is a $55.0 billion consumer goods company that manufactures and markets snack food and beverage products worldwide.

The most significant technical aspect of stocks, in our view, is the combination of price and volume.
While volume did accelerate on Wednesday as MDLZ moved lower (arguably bearish), key closing price support at $30.80 was not violated at the closing bell.
There’s a decent chance that MDLZ is marking a short-term bottom.

Tom’s Take: Therefore, we like entry at the current price with a target just above $32.00 (recent high) and a very tight closing stop beneath $30.75. A more conservative approach might be to enter at two levels – current price and again at the rising 50 day SMA. A closing stop of $29.25 could then be considered while awaiting a more intermediate-term target of $35.00.
– Tom Bowley, Invested Central
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