Kind of amazing. Hormel Foods (HRL) has had a nearly uninterrupted advance from its 2009 lows and there is no top in sight.
Whlle many people, except residents of Hawaii, poke fun of Hormel's famous product -- Spam -- the technical outlook for HRL is serious business (see the chart, above). In the past year, the technical condition of HRL has only become stronger. Prices are firmly above the rising 50-day and 200-day moving averages. The On-Balance-Volume (OBV) line is rising -- telling us that the buyers of HRL are more aggressive and are willing to push up the stock to acquire more shares. Also notice how the pace of the advance has accelerated in about the past five months.
This three-year weekly chart of HRL, above, is also very positive, with prices comfortably above the rising 40-week moving average. The OBV line has been rising, confirming the advance. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish mode. Prices are not overbought and could continue to advance into the low $50s in the months ahead. A setback under $35 would change the outlook.
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Traders who are still long the household products company need to sell as best as possible before further losses pile up.
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