HRL runs into sellers around 51.17 for the third day in a row
Hormel Foods Corporation (HRL) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
HRL finished Tuesday at 51.13 gaining $0.33 (0.65%), slightly outperforming the S&P 500 (0.36%). Today's close at 51.13 marks the highest recorded closing price ever. Trading up to $0.30 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 Aug 04, 2020):
Tuesday's trading range has been $0.74 (1.46%), that's slightly 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.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Buyers managed to take out the key technical resistance level at 51.09 (now S1), which is likely to act as support going forward. The last time this happened on July 23rd, HRL actually lost -0.55% on the following trading day. Hormel Foods ran into sellers again today around 51.17 for the third trading day in a row after having found sellers at 51.24 in the prior session and at 51.17 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 51.24 where further buy stops could get activated. With prices trading close to this year's high at 51.53, upside momentum might accelerate should the market 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 "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Hormel Foods. Out of 286 times, HRL closed higher 52.80% 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 61.89% with an average market move of 0.74%.