Mondelez Jumps 3.45% To 69.80 As Bullish Momentum Builds

Mondelez International (MDLZ) concluded the most recent trading session with a notable 3.45% gain, closing at $69.80 after reaching an intraday high of $69.85. This marks the second consecutive positive session, bringing the two-day advance to 4.58%, which indicates renewed bullish momentum following a consolidation period.
Candlestick Theory
Recent price action exhibits a bullish reversal pattern. The July 16 candle formed a hammer (low: $66.485, close: $67.47) near the $66.50 support zone, confirmed by yesterday’s strong white candle that closed near its high. Resistance is evident at $69.85–$70.00, aligning with the early-July swing high. A decisive close above $70.00 would signal breakout potential, while support holds at $67.50 (previous resistance turned support) and the critical $66.50 level.
Moving Average Theory
The current price trades above all key moving averages: 50-day (~$67.20), 100-day (~$66.80), and 200-day (~$65.40). This configuration signals a robust long-term uptrend. The 50-day MA has consistently acted as dynamic support during pullbacks, most notably in mid-June and early July. The ascending alignment of shorter-term averages above longer-term ones (50 > 100 > 200) reinforces bullish bias, though proximity to the 50-day MA suggests vigilance for short-term mean reversion.
MACD & KDJ Indicators
The MACD histogram shows accelerating bullish momentum, with the fast line crossing above the signal line after a brief dip below neutral territory. KDJ readings are elevated (K: ~85, D: ~75, J: >90), indicating overbought conditions. While this supports near-term continuation, it also raises caution for a pullback. No bearish divergence is evident, as the July 17 price high aligns with a higher KDJ peak compared to early July.
Bollinger Bands
Price pierced the upper Bollinger Band ($69.20, 20-day SMA basis) yesterday, typically signaling overextension. This occurred alongside band expansion (width: +15% over three sessions), reflecting rising volatility and strong directional conviction. While such breakouts can precede short-term consolidation, the band expansion suggests the move may have further upside. Key support resides at the midline (~$67.70).
Volume-Price Relationship
Volume surged 71% to 9.14 million shares during the 3.45% advance, confirming bullish commitment. This contrasts with the 11.46 million share distribution day on July 9 (price fell 1.97%). Recent accumulation patterns—higher volume on up days (July 1, July 17) versus lighter volume during pullbacks—validate sustainability. Resistance tests at $70.00 will require volume persistence to confirm breakout validity.
Relative Strength Index (RSI)
The 14-day RSI (now ~72) has entered overbought territory from a neutral 55 just three sessions prior, reflecting rapid momentum buildup. While this warns of short-term exhaustion, RSI may remain elevated during strong trends. The indicator’s prior failure to breach 30 during June–July dips signals underlying strength. Confluence with KDJ overbought readings suggests heightened reversal risk near resistance.
Fibonacci Retracement
Using the swing high of $69.85 (July 2) and swing low of $66.48 (July 16), key retracement levels are $68.65 (38.2%) and $69.10 (23.6%). Yesterday’s close at $69.80 exceeded the 23.6% level, approaching full retracement. This shallow pullback and swift recovery indicate robust demand. A breakout above $70.00 could target the 127.2% extension ($71.25), while failure here may retest $68.65 support.
Concluding Observations
Multiple indicators converge to support near-term bullishness: 1) Volume-confirmed candlestick breakout, 2) Golden Cross alignment in moving averages, 3) MACD momentum uptick, and 4) shallow Fibonacci retracement. However, overbought oscillators (RSI, KDJ) and Bollinger Band penetration suggest potential consolidation or pullback near $70.00 resistance. Absence of bearish divergences favors buying pressure, but decisive clearance of $70.00 is critical for sustained upside. Should this resistance hold, a retreat toward $68.65–$67.50 support may materialize before renewed buying interest emerges.