The daily chart indicates that MKC has been in a consolidation pattern for the past 6 months or so. That pattern has developed a mildly bullish pattern but momentum has not turned up. Consequently it will probably be O K to pick up a few shares if you are a patient investor. If you like the fundamentals, you should do O K.
Boy, I'm not seeing anything positive in the chart. I'm for sure NOT a chart reader but SMA(20,50,200) are all dropping, though the 20 recently popped a bit only to reverse the last 3 weeks. RSI(14) is dropping along with the stock price. What should I look at to see anything positive for a long term investor? MKC has been dropping all year. I'm starting to spend a little time on technicals so would appreciate the info.
Fundamentally, MKC looks expensive and I'd wait. Tough comps ahead.
I will check again carefully. I bought 6-7 (?) years ago, so I’m sitting on a big CG. However, I have losses carried forward, so I can also sell. Maybe I’ve made the easy money on this one. My position is relatively insignificant, so no big deal to part ways.
I have no idea where my post went last night, but here goes another one. I neglected to post a weekly chart in my original post, but the weekly chart shows more precisely what one should be looking at. stockcharts.com/h-sc/ui?s=MKC&p=W&b=3&g=0&id=p71994637023&a=1034158166&listNum=86 Namely that Pennant on a flagpole pattern. A pennent patern is usually a continuation pattern. In this case, when it breaks out of the pennant, it should continue the flagpole pattern which preceded it. Since this is a weekly chart one would usually wait for the end of the week before making a decision, however given this mornings market prognostications I might make purchase today if I had any money. Guarantees come with savings accounts, not stock purchases.
Unclecharly, thanks for that second chart. This is why I have trouble understanding charts; kind of a Rorschach test. I looked up the pennant pattern in my Pring book, along with triangles and I guess I see the formation, though the start of the bottom line of the pennant looks somewhat arbitrary to me. Pring says a pennant is a shorter term formation, 2-8 weeks but a triangle can be of any duration. A triangle works best when the breakout is 1/2 to 3/4 the distance between the widest peak and rally and the apex, so your chart shows just a tad over 3/4. Also, the volume trend during the formation of a pennant or triangle is normally declining but springs back at the breakout. MKC volume seems to have been fairly high during the formation of this pennant, or whatever it may be.
Pring also warns that a right triangle, which your chart is very close to being as the bottom line is very nearly horizontal, turning into a rectangle, downward-sloping in this case.
Also, it looks to me look like MKC is breaking out to the downside and indeed the triangle could turn into a rectangle.
I'm remembering now why I gave up on technicals.
Last Edit: Sept 30, 2021 15:56:45 GMT by bb2: Clarity
Darn right. It's been good to me, but I've got to get out before I lose all my gains. Fido says I bought it in Jan. 2014 at $31.50/share. (And I've been collecting dividends all along.) I think the easy money has been made.
I'll let it ride the bounce I'm hoping to see on Thursday, and on the first down day I will let it go. It added some spice to my portfolio (sorry) but I'm looking to simplify and streamline.