Friday, December 27, 2013

Hormel Foods Corporation (NYSE: HRL)

Hormel Foods Corporation processes, markets, and sells consumer-branded meat and food products. The Grocery Products segment offers shelf-stable food products, including canned luncheon meats, shelf-stable microwaveable meals, stews, chilies, hash, meat spreads, flour and corn tortillas, salsas, and tortilla chips in the retail market. The Refrigerated Foods segment provides branded and unbranded pork and beef products for retail, foodservice, and fresh product customers. The Jennie-O Turkey Store segment offers branded and unbranded turkey products for retail, foodservice, and fresh product customers. The Specialty Foods segment is involved in the packaging and sale of various sugar and sugar substitute products, salt and pepper products, liquid portion products, dessert mixes, ready-to-drink products, sports nutrition products, gelatin products, and private label canned meats to retail and foodservice customers. The International and Other segment manufactures, markets, and sells its products internationally.
To review Hormel’s stock, please take a look at the 10-month chart of HRL (Hormel Foods Corporation) below with my added notations:
10-month chart of HRL (Hormel Foods Corporation)
The $44 level (blue) was clearly a key point of resistance for HRL from August through mid-November. In addition, the stock formed a trendline of support (red) starting back at the end of August. These two levels combined had HRL stuck within a common chart pattern known as an ascending triangle. The stock broke through the $44 level to a new 52-week high towards the end of November and has now pulled back to that level.

The Tale of the Tape: HRL broke the resistance of its ascending triangle. A long trade could be made on a pull back to $44. A break back below the $44 level would possibly negate the forecast for a move higher.
Please share this article

No comments:

Post a Comment