$Tupperware(TUP)$had a phenomenal 2020 thanks to hyper demand for at-home meal containers at the onset of the pandemic. Then 2021 came along with difficult comparisons and reopened restaurants. By the end of the year the stock lost half its value.
Things are looking up again for the old school packaging specialist. Searching for a much-needed bottom, Tupperware recently notched a pair of significant technical events. First, its share price crossed the 50-day moving average which suggests an intermediate term uptrend is afoot. It is a place the stock hasn’t been since early November, shortly before a weak third quarter report caused a high volume gap down.
Then a bullish inside bar appeared on the weekly chart with Tupperware trading just above $15. This valuable candlestick told traders that after a long stretch of dominance by the bears, selling-to-buying activity has become more balanced. In other words, the inside bar means that with sellers losing strength and buyers building strength, an uptrend could be imminent.
Thus far the inside bar has been spot on. Tupperware shares have inched higher for five consecutive days. If they can break resistance at $17, they could be on their way to filling the November gap that started around $24. This may finally be the bottom of the dish for Tupperware. Traders that take the risk here could be in for some delicious gains.
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