HRL breaks below Tuesday's low
Hormel Foods Corporation (HRL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HRL ended Wednesday at 49.45 losing $0.36 (-0.72%), slightly underperforming the S&P 500 (-0.46%). Today's close at 49.45 marks the lowest recorded closing price since July 15th. Trading $0.24 higher after the open, Hormel Foods was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 3rd, HRL actually gained 0.18% on the following trading day. Closing below Tuesday's low at 49.78, the market confirmed its breakout through the previous session low after trading up to $0.36 below it intraday.
Daily Candlestick Chart (HRL as at Sep 16, 2020):
Wednesday's trading range has been $0.68 (1.36%), that's below the last trading month's daily average range of $0.92. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HRL.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 48.92 (S1).
While the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the close-by swing low at 49.39 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Hormel Foods. Out of 247 times, HRL closed higher 59.51% 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 62.75% with an average market move of 0.99%.