HRL closes within previous day's range after lackluster session
Hormel Foods Corporation (HRL) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
HRL ended the month -1.15% lower at 48.27 after losing $0.07 (-0.14%) today on high volume, significantly underperforming the S&P 500 (1.54%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HRL as at Jun 30, 2020):
Tuesday's trading range has been $0.76 (1.56%), that's below the last trading month's daily average range of $0.89. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HRL.
Even with a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on June 3rd, HRL gained 0.63% on the following trading day.
Prices are trading close to the key technical resistance level at 48.92 (R1). After having been unable to move lower than 48.06 in the previous session, Hormel Foods found buyers again around the same price level today at 47.95.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the nearby swing high at 49.06 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 47.20 where further sell stops could get triggered. Further buying might move prices higher should the market test May's nearby high at 49.39.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Hormel Foods. Out of 77 times, HRL closed higher 54.55% 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 70.13% with an average market move of 1.57%.