Potential 300% Winner Hidden In Plain Sight
All eyes are on Fed Chair Powell today.
It’s probably a good day to take off and not be affected by whatever the markets do.
However, today’s trade is one you’ll want on your watch list regardless of the market direction.
Read below for the details
As you can see in the chart below, Kellogg (K) had a massive up day on August 1.
This was due to an earnings report.
In addition, there are rumors of interest from activist investors. If there were to materialize there will almost certainly be a big jump in the stock price.
However, there is also a bullish pattern that most traders will probably miss.
As a result of the market sell-off, there are very few stocks that are trading higher than their August 1 close.
Since K’s chart pattern is in a consolidation pattern, this bullish condition is not obvious.
If K trades over $64.60, it’s a buy signal. Once this level is broken the momentum should kick in and push K higher, and I’ll look for an initial move to $70, and then on to $75.
The stop is under $62.50.
One way to turn this move into a big winner is to buy the Dec 67.5/72.5 call spread for $1.30 if K is trading over 72.5 by year-end that will be almost a 300% winner.
Rick Nartarian, Chief Investment Officer
Darwin Wealth Creation