Tyson Foods (TSN) seems to be able to shake off bird-flu fears, regional competitors and inroads from farm-raised fish and other meats. In fact, the price of TSN has climbed 50% in the past five months.
In this short-term chart of TSN, above, you can see that TSN had a good 2015 but the last five months has been spectacular. Notice how the On-Balance-Volume (OBV) line has confirmed and supported the rally for many months. Also notice how the slope of the 50-day and 200-day moving averages turned up from November -- and the bullish position of the Moving Average Convergence Divergence (MACD) oscillator. The recent upside price gap shows that bullish surprises from the demand side can happen even in uptrends. Chartists call this kind of gap a runaway, or measuring, gap. Typically, it marks the middle of a price move and suggests that TSN can rally to $65 or higher. With prices extended on the upside, we would wait for a pullback to $60 on light volume before buying.
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This longer-term chart, above, of TSN has further to go on the upside. Corrections have been sideways affairs the past three years -- a sign of strong demand for the stock, as buyers don't wait for deep corrections to buy. Prices are above the rising, 40-week moving average. The OBV line is positive on this time frame and the MACD oscillator is bullish. This is what technicians like to find when they comb through charts. Beyond our $65 price target based on the measuring gap, the mid $70s is a price target projected from a point and figure "count."