MKC- McCormick & Company $41.43 +0.57 (+1.75)
Thursday's Update:
Time to add some spice to your trading with McCormick & Company, a
leading provider of spices, herbs, seasonings and other specialty
food products. MKC broke out of its three-year $26-$36 trading
range in late November. The stock then spent two months
consolidating in the $34-$38 range. On February 12th, shares of
MKC broke out on heavy volume and continued to move higher into
its earnings release on March 19th. Unfortunately, the stock sold
off on profit taking just prior to, and just after, the earnings
release. Nevertheless, we believe that MKC has shaken off its
post-earnings slump and could be ready to break out to new highs.
We are also looking for a possible split with its next BoD meeting
or with the June earnings release. The company has enough shares
for a split with 160 million authorized and 60.4 million issued.
MKC announced its last three splits when the stock was trading in
the $35-$45 range, so it is currently trading within historic
split range. Going forward, support is the 5-dma at $40.80 with
stronger support at $40.35, the 20-dma. Resistance is the all-time
high of $41.58 and then possibly $43. Traders may consider entry
points on a bounce off of $40.80 or a breakout above $41.58 on
volume greater than 65,000 shares by noon. We plan to set stops at
$38.75 to limit potential losses.
Picked on March 29th @ $41.43
Change since picked +0.00
Stop Loss @ $38.75
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