Leading food and beverage company, Kraft Heinz Co (KHC), is dropping sharply after being downgraded today. The stock is trading lower by 3.59% after being downgraded by Guggenheim to Neutral from Buy. The firm stated that Kraft Heinz Co (KHC) portfolio’s lacked pricing power. The stock is now trading below its 50 and 200-day moving averages. This puts the stock in a weak technical position on the charts.
There is a very good support level for Kraft Heinz Co (KHC) stock around the $32.00 level. This support area is a major retrace level from the March 2020 lows to the May 2021 highs. Often, a major retrace level will serve as solid support when tested. This key level is also where the staged a reversal pivot to the upside back in January 2021 before surging to a new 52-week high. I will be looking at the $32.00 for a long side trade in the stock.
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