HRL rises to highest close ever
Hormel Foods Corporation (HRL) Technical Analysis Report for Jul 29, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, HRL finished Wednesday at 50.84 gaining $0.28 (0.55%), underperforming the S&P 500 (1.24%). Today's close at 50.84 marks the highest recorded closing price ever. Trading up to $0.38 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 7th, HRL actually lost -0.50% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (HRL as at Jul 29, 2020):
Wednesday's trading range has been $0.64 (1.26%), that's below the last trading month's daily average range of $0.85. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HRL. Prices continued to consolidate within a tight trading range between 49.86 and 51.12 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
After trading down to 50.44 earlier during the day, the market bounced off the key technical support level at 50.44 (S1). The failure to close below the support could increase that levels importance as support going forward. The share found buyers again today around 50.44 for the third trading day in a row after having found demand at 50.44 in the previous session and at 50.37 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 51.12 where further buy stops could get activated. With prices trading close to this year's high at 51.53, upside momentum might speed up should Hormel Foods be able to break out to new highs for the year.
Among the 10 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 452 times, HRL closed higher 60.62% 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 59.51% with an average market move of 0.86%.