Danone is a multinational food-products corporation. Founded 1919 in Barcelona, it is headquartered in Paris. Through the years, it has seen mergers with Gervais in 1967 and with BSN in 1973. Danone is a part of CAC40 index. Investors can trade it under the ticker $BN at Euronext Paris and under $DANOY in US in form of ADRs. Corporation Danone, in US under the name Dannon, is well-known through the trademarks like Actimel, Alpro, Evian, Volvic, Badoit, Activia, Taillefine, Danette, Blédina and others. The company products are present in 120 countries.
The stock price of Danone is in permanent rally from the all-time lows. However, the monthly average presents more or less a linear form of the rise. That means, that soon or later the price action may switch into an acceleration mode. Indeed, stocks are known to show an impulsive breakout above the base channel in a 3rd wave after a development of a long basis or/and series of nests. In Danone, we can, therefore, expect a breakout to happen which may bring the prices considerably higher.
Danone Monthly Elliott Wave Analysis 10.04.2020
The monthly chart below shows the Danone shares $BN traded at Euronext Paris. From the all-time lows, the stock price has developed a cycle higher in wave (I). Hereby, Danone has printed the top on February 2007 at 60.66. Within the impulsive advance in wave (I), the internals I, III and V are impulsive waves, too. From the 2007 highs, a correction lower in wave (II) has unfolded as a regular flat pattern being a 3-3-5 structure. It has found its bottom in March 2009 at 31.20.
From the March 2009 lows, a new cycle in wave (III) has started to the new highs. Break of 60.66 has confirmed that. The price has printed the all-time highs in wave I of (III) at 82.40 in September 2019. The pullback lower in wave II might have ended in March 2020 at 50.20. While above there, wave III of (III) may extend towards 60.66 and higher.
Danone Daily Elliott Wave Analysis 10.04.2020
The Daily chart below shows the $BN shares price action in more detail. From the March lows at 50.20, the stock price has advanced in 5 waves of a blue wave (1). The preferred view is a leading diagonal which has ended at 65.70. From there, a double correction lower should find suport above 50.20. In particular, $BN can reach lower towards 51.17-50.20 extension area before the price may turn higher again. Breaking below 50.20 would open a bearish sequence with an expectation of more downside. As of right now, however, Danone is expected to extend higher in wave (3) of ((1)) of III.
As an outlook, while above 50.20, the new cycle in red wave III should bring the prices towards 101.44-133.02 area and even higher. In a larger time scale, the target for blue wave (III) will be 92.02-129.50 and higher. Entering at current price levels or from 51.17-50.20 area and expecting €92 per share in a long run, investors in food-products sector do obtain a good risk-reward ratio by taking on with the Danone stock.
