Nestle explores strategic options – Prices form a symmetrical triangle pattern

Market trader analysing data
Nestle, the food and drink processing conglomerate, said it has decided to explore strategic options, including a potential sale, for the majority of the Nestle Waters business in North America, excluding its International brands. The business achieved sales of around 3.4 billion Swiss franc in 2019, according to Bloomberg.

From a chartist’s point of view, the stock price remains stuck in a symmetrical triangle pattern. The 20-day simple moving average started to flatten out. The daily Relative Strength Index (RSI, 14) is around its neutrality are (50%). The breakout of the pattern will provide the direction of the next move. A break below 99.8CHF would open a path to see 96CHF and 93CHF. Alternatively, a push above 108.7CHF would call for a rise towards 113.2CHF.

Source: GAIN Capital, TradingView


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