It's not because I love chocolate that I am bullish on Hershey Co. (HSY) , but it is true. The New York chocolate show is always on my calendar and it was great last week. The fact of the mater is that the chart is bullish. The indicators are bullish. 72% and higher bullish. Let's skip the entree and go straight to the dessert.
In this daily bar chart of HSY, below, we can see that buyers of HSY have shown up since July around the $104 area. The slope of the 50-day moving average line turned bullish in September and crossed above the rising 200-day line earlier this month for a bullish golden cross.
The On-Balance-Volume (OBV) line started to rise in late August and tells us that buyers of HSY became more aggressive. Also take note of the late October decline and slight new low. Notice how quickly those losses were recouped? The trend-following Moving Average Convergence Divergence (MACD) oscillator is bullish. A bullish alignment of indicator as prices challenge the May/June zenith.
In this weekly bar chart of HSY, below, we went back four years to give a little more perspective. Prices are poised to break above the highs of 2016 and 2017. HSY is above the rising 40-week moving average line. The weekly OBV line has been making higher lows for over two years. The weekly MACD oscillator has turned up for a fresh outright go long signal.
In this Point and Figure chart of HSY, below, HSY has already broken out to a new high at $115.37. A longer-term potential price target of $141.36 is shown.
Bottom line: We are months away from Valentine's Day and Mother's Day, two of the biggest chocolate buying periods of the year, but I would not wait for those events. Consider going long HSY here and on a close above $116 risking a close below $110. Target $140.