ConAgra Brands $CAG announced today that the boards of directors have agreed to acquiring Pinnacle Foods $PF for $10B in cash and stock. "Under the terms of the transaction, Pinnacle Foods shareholders will receive $43.11 per share in cash and 0.6494 shares of Conagra Brands common stock for each share of Pinnacle Foods held. The implied price of $68.00 per Pinnacle Foods share is based on the volume-weighted average price of Conagra Brands' stock for the five days ended June 21, 2018. The purchase price reflects an adjusted EBITDA multiple of 15.8x, based on Pinnacle Foods' estimated fiscal year 2018 results excluding synergies, and 12.1x adjusted EBITDA including run-rate cost synergies." (StreetInsider.com)The market doesn't seem to like this acquisition as CAG's share price fell sharply during the 6/27 session.CAG Daily Chart(click to enlarge)Bearish Breakout:- The daily chart shows a market that is relatively sideways based on the relatively flat 200-day simple moving average (SMA) (in green).- Price action has been slightly bullish since late 2017 when price bottomed above $32 and rallied to $39. - Then price action started to go sideways under $39.25 and above $35.00.- The ability to hold above the 200-day simple moving average (SMA) reflected some bullish bias. - In June, price appeared to be in a breakout attempt. - However, it initially lost steam, and capitulated during the 6/27 session after the acquisition announcement. - Big acquisitions like this does not look good for growth. - I think we can expect the market to become sideways-bearish with $35 as the first short-term target, and the $32.50-$33 area as the next. - I think we should limit the bearish outlook to $30 and anticipate buying even above this key support because the overall long-term trend is still bullish. - Basically, we should anticipate some bearish price action in the short-term, but still respect the long-term uptrend.- The weekly chart shows a possible abc correction within the context of the long-term uptrend (since 2009). CAG Weekly Chart(click to enlarge)