Cans of Hormel chili stand on partially empty grocery store shelves inside Kroger Co.'s Ralphs supermarket amid fears of the global growth of coronavirus cases, in Los Angeles on March 15, 2020.PATRICK T. FALLON/Reuters
On August 24, 2018 (US$37.96), we suggested that Hormel Foods (Friday’s close US$50.18) had a breakout above resistance (shaded area) and provided Point & Figure targets of US$43 and US$47. Shortly afterward, Hormel rose to a high of US$46.25 essentially fulfilling our targets (A).
After a retest of its trend-line (solid line - B), it resumed the up-trend (C), and except for a temporary pullback below its 40-week Moving Average (40wMA) and below the rising trend-line (D), it rose and settled in a wedge pattern (dotted lines) and now appears to be resuming the up-trend (E).
Only a sustained decline below ±US$46 would be negative.
Point & Figure measurements provide targets of US$54 and US$59. 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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