HRL still stuck within tight trading range
Hormel Foods Corporation (HRL) Technical Analysis Report for Aug 03, 2020 | by Techniquant Editorial Team
HRL finished Monday at 50.80 losing $0.06 (-0.12%), underperforming the S&P 500 (0.72%). 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 Aug 03, 2020):
Monday's trading range has been $0.62 (1.21%), that's below the last trading month's daily average range of $0.83. 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 50.16 and 51.24 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 50.44 (S1). After having been unable to move above 51.17 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 51.24. The last time this happened on July 29th, HRL lost -0.18% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 50.16 where further sell stops could get triggered. With prices trading close to this year's high at 51.53, upside momentum might accelerate should the stock be able to break out to new highs for the year.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Hormel Foods. Out of 640 times, HRL closed higher 55.63% 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 63.59% with an average market move of 0.83%.