HRL breaks back above 200-day moving average
Hormel Foods Corporation (HRL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
HRL finished Thursday at 44.85 gaining $2.91 (6.94%), outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 44.37, the share confirmed its breakout through the prior session high after trading up to $0.61 above it intraday.
Daily Candlestick Chart (HRL as at Mar 26, 2020):
Thursday's trading range has been $3.13 (7.45%), that's slightly above the last trading month's daily average range of $2.71. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for HRL. Prices continued to consolidate within a tight trading range between 41.70 and 45.14 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 200-day moving average at 43.28. When this moving average was crossed above the last time on Tuesday, HRL actually lost -6.49% on the following trading day. Prices are trading close to the key technical resistance level at 45.35 (R1). After having been unable to move lower than 41.70 in the previous session, the stock found buyers again around the same price level today at 41.85.
Hormel Foods shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Hormel Foods. Out of 458 times, HRL closed higher 59.61% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.04% with an average market move of 0.87%.