The Hershey Company (HSY stock) price showed an inverted V-shaped fall from the high of $270 and is close to the lower trendline. Moreover, the stock price slipped below the significant moving averages showing intense selling pressure in the past sessions. From the start of 2023, HSY stock has attained momentum, acquired gains, and reached $270. Afterward, Q1 earnings were not per the estimates, and the stock faced a trend reversal, giving sellers an advantage.
The Q2 earnings were below estimates, and the fall became more aggressive, which broke down the cluster of $250. However, the buyers held the selling pressure, and the price paused near the trendline of $220, willing for a bounce to retest the 200-day EMA near $240.
HSY stock retraced from the highs of $270 and is near the 50% Fib level near $220, which, if it breaks, will lead to a fresh downtrend toward the trajectory of $215, followed by $200. HSY stock fell sharply. A bounce is likely in the upcoming sessions.
At press time, HSY stock price is trading at $223.79 with an intraday drop of 0.82%, showing a negative outlook on the charts. Moreover, the trading volume remained at 1.012 Million, and the market cap is $45.758 Billion. However, analysts maintained a neutral rating with a yearly target price of $262.60, which was tested in the past sessions.
HSY Stock Price Action Shows Bears Grip On Daily Charts
On the daily charts, HSY stock showed a sharp correction from the top (at $270) and is now close to the strong support at 50% Fib level near $220. Also, the lower trendline is near it, which might trigger a bounce if buyers succeed in accumulating.
About HSY Stock
The Hershey Co. engages in the manufacture and marketing of chocolate, sweets, mints and confectionery products. The firm operates through the following geographical segments: North America and International and Other. North America is responsible for the traditional chocolate and non-chocolate confectionery market position of the company, as well as its grocery and snacks market positions, in the United States and Canada.
The International and Other segment includes the combination of all other operating segments, including those geographic regions where the company operates outside of North America. Its brands include Hershey’s, Reese’s, and Kisses.
Short Term Charts Suggests A Bounce
Hershey stock price is near the oversold region, the buyers are accumulating steadily. The 200-day EMA is likely to be retested.
The RSI curve stayed near the oversold region, forming a negative crossover, but the technicals and the divergence suggest a bounce in the coming sessions.
The MACD indicator showed a bearish crossover, the red bars near an end, and bullishness is likely in the upcoming sessions.
Conclusion:
The Hershey Corporation (HSY stock) price is near the lower trendline and was corrected from the high of $270. Buyers are accumulating the stock, and the price is in a strong demand zone, which creates an opportunity for investors to make longs to retest $250.
Technical Levels:
Support Levels: $220 and $210
Resistance Levels: $230 and $250
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/08/11/will-hershey-stock-nyse-hsy-rebound-from-trendline-at-220/