HSY dominated by bulls lifting the market higher throughout the day
The Hershey Company (HSY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 8th day in a row, HSY finished the week 2.75% higher at 160.34 after gaining $1.01 (0.63%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 160.34 marks the highest recorded closing price since September 4, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 159.48, the market confirmed its breakout through the previous session high after trading up to $1.11 above it intraday.
Daily Candlestick Chart (HSY as at Feb 14, 2020):
Friday's trading range has been $1.77 (1.11%), that's below the last trading month's daily average range of $2.43. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HSY.
One bullish candlestick pattern matches today's price action, the White Candle.
Crossing above the upper Bollinger Band for the first time since January 30th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 154.83 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on January 30th, HSY actually lost -1.88% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 162.20 is within reach and we could see further upside momentum should the share manage to break out beyond.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "8 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for The Hershey. Out of 3 times, HSY closed lower 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 66.67% with an average market move of -0.39%.