This trade idea is not sugar free. Let’s take a bite of $HSY – May 13, 2022HSY SPY
This is Scott with your Chart of the Day. It’s been a crazy week in the market, that’s for sure. But this chart right here from Hershey ( NYSE: HSY ) has held up pretty well considering the S&P 500 ( NYSEARCA: SPY ) had a MAJOR move down and a MAJOR move up.
Hershey ( NYSE: HSY ) just kind of hung around the 8 and the 21-day exponential period moving averages. As you can see here I have drawn this downward sloping trendline, we have a clear level of resistance here. Today was a nice up day with the rest of the market and a nice pickup in volume.
What I want to see from Hershey ( NYSE: HSY ) is some chocolate, but also a move through this downward sloping trendline coming on higher than average volume. Now, I would say today was probably a good starter position day but I don’t think you are late on this. I think you really want to wait for this stock to move out of this consolidative base.
Now, it is kind of a high base, if I zoom out here you can see it has had a really nice run off of the December low, it has gone up about 30 percent. This could still consolidate for a while, maybe have the 50-day moving average catch up.
But for a short-term trade you might be able to catch a move out of the base and a retest of the highs, from this level here to there, that’s about 2 percent or 4 points. That’s not a bad move for a crumby market. That’s what I will be watching for here on Hershey ( NYSE: HSY ). I will be setting an alert right around that 227.60 level here on my charting platform.