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Hormel Foods Corp. (Friday’s close $37.96) had a sharp rise from US$25.06 to US$45.72 from early 2015 to early 2016 (A-B) and then reversed this trend as it fell below its 40-week moving average (40wMA – C). The stock stayed below a falling trend-line for almost two years (dotted line) but rallied above its 40wMA in late 2017 to signal the end of the down-trend (D).

The recent price action of higher lows (solid line) as well as the rise above ±US$38 (E – shaded area) signal the breakout and the start of a new up-leg. Only a decline below ±US$35 would be negative.

Point & Figure measurements provide targets of US$43 and US$47. Higher targets are visible.

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Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.

Chart source: www.decisionplus.com

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 07/11/24 3:25pm EST.

SymbolName% changeLast
HRL-N
Hormel Foods Corp
-0.94%30.43

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