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Bertschis Chart Outlook Blog

Welcome to ROLF BERTSCHIS BLOG - Your Guide to the Financial Markets!
Here, I analyze current market trends, create well-researched forecasts and share insightful charts to help you better understand the dynamics of the financial world.

NESTLE - Bullish turnaround or just a bear market rally?

The secular uptrend in Nestlé topped on January 4, 2022 at 129.80. See my Chart Outlook publications from Q4 2021 (in the menu section “Previous Publications”) in which I called for a lengthy bear market. On January 26, 2022, I stated in the Swiss Chart Outlook (page 25): “Nestlé is testing the 144-day moving average at 118 and the support at 117 to 116. Clearly, a break of these levels would signal a major top and a new downtrend with supports at 112, 108 or 111 to 96. Investors should reduce or sell if the supports are broken.”
The chart below shows that Nestlé fell below my target at 96 as it registered a low on December 20, 2024 at 72.82. Interestingly enough, the low was registered near the multiple Fibonacci support range between 74 and 71. On the next lower chart, I take a look at the rebound from January and provide the key support and resistance levels.

Nestlé rose from December 20, 2024 at 72.82 to March 24, 2025 at 91.72. This was a rally of 26%. The main question here is: will the uptrend from January form an inverse head and shoulder bottom and will Nestlé break upwards above the neckline range between 90.50 and 93.50 to signal substantially higher targets? Or, will Nestlé resume the downtrend and break below the supports at 83.20, 79 and break the mega support at 73-71 to signal substantially lower targets? For now, the odds are even between the two scenarios.
However, I would ADD to the Nestlé position (or BUY) if 89 and 90.50 and 93.50 are broken.
I would SELL Nestlé in steps if the supports are broken at 80, 79 and 72 to 71.

Rolf Bertschi