On February 28, we mentioned that Kellogg Co. (NYSE:K) was trading near the resistance of a head and shoulders pattern. We suggested that the throwback toward the neckline was normal and that it was a sign that the bears were still in control of the direction. We noted that traders would set their targets near the January low, which did not pan out like we were expecting.
However, despite the fact that the stock did not reach our target, we've chosen to take another look at the chart because the price is testing the resistance of the neckline for the second time. We still expect that the ascending trendline will prevent the bulls from sending the price higher and we'll maintain our target price of $47.