HRL closes within previous day's range
Hormel Foods Corporation (HRL) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
HRL finished Monday at 48.06 losing $0.14 (-0.29%), but still outperforming the S&P 500 (-0.94%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HRL as at Jul 13, 2020):
Monday's trading range has been $0.87 (1.79%), that's slightly above the last trading month's daily average range of $0.87. 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 slightly lower than usual for HRL.
Prices are trading close to the key technical support level at 47.36 (S1). Unable to break through the key technical resistance level at 48.52 (R1), the stock closed below it after spiking up to 48.74 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on June 19th, HRL lost -0.33% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Trading close to May's high at 49.39 we could see further upside momentum if potential buy stops at the level get activated.