HSY finds buyers again around 101.91
The Hershey Company (HSY) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
HSY ended the week -0.94% lower at 103.41 after gaining $1.32 (1.29%) today, slightly underperforming the S&P 500 (1.42%). Trading up to $0.62 lower after the open, The Hershey 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 (HSY as at Oct 12, 2018):
Friday's trading range has been $1.82 (1.78%), that's slightly above the last trading month's daily average range of $1.62. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HSY.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
The share managed to break above the 20-day moving average at 103.07 today. When this moving average was taken out the last time on October 5th, HSY gained 1.76% on the following trading day. Prices are trading close to the key technical resistance level at 103.91 (R1). After having been unable to move lower than 101.66 in the previous session, the stock found buyers again around the same price level today at 101.91.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to October's low at 101.20, downside momentum could accelerate should the market mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Close to R1 Resistance" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for The Hershey. Out of 1,319 times, HSY closed higher 50.19% 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 60.58% with an average market move of 0.74%.