Sunday, February 10, 2008

HSY - The Hershey Company


HSY, has been entrenched in a slow and steady down turn on the DAILY chart... The share price is exhibiting two main characteristics here: (1) There have been a number of attempt to put in a bottom, but to this date, all have failed; (2) The price has been capped by the SINGER EMA Band, which represents a significant amount of overhead supply coming into the market as sellers have taken control...One more try at a bottom here...


HSY is trying to find some Support at these levels after a large decline. It looked like HSY was setting up for a symmetrical triangle continuation pattern and could really move higher except the overall market tanked and margins shrank at the venerable chocolate maker on higher input prices for COCOA and SUGAR. Broke under Dashed mid-line Support and has been trapped under the SINGER EMA Band in it's recent serious down turn as illustrated by Blue Trend-line Resistance...


HSY was up massively on the MONTHLY chart from around $10 to around $65 over a 10+ year period starting in 1995.. Price took a needed rest and began consolidating those gains and looked like it might continue the uptrend. However, a decline began taking the stock down to the Resistance turned Support line formed by the 1998 highs... Significantly below a narrow downward tilting SINGER EMA Band which I think might produce a near term counter trend rally but the long term prospects are questionable...


HSY:$SPX - really illustrates the highly oversold nature of HSY as well as it's current underperformance... Near term Bounce???

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