Hormel Foods ( HRL) is known for its Spam and Skippy products as well as others lurking in our pantries at home.
Let's check out the charts and indicators to see what's lurking there.
In the daily bar chart of HRL, below, I can see that the shares have tumbled since a zenith in late November. HRL trades below the declining 50-day moving average line and below the declining 200-day line.
The On-Balance-Volume (OBV) line has been in a downward path the past year and tells me that sellers of HRL have been more aggressive than buyers (HRL has seen heavier volume traded on days when it has closed lower than on days when it has closed higher.) The Moving Average Convergence Divergence (MACD) oscillator is in a bearish alignment below the zero line.
In the weekly Japanese candlestick chart of HRL, below, I see a disappointing picture. Prices have lost ground the past three years -- no AI rally here. HRL trades below the negatively sloped 40-week moving average line.
The OBV line has moved sideways the past three years. The MACD oscillator has been bearish the past year.
In this daily Point and Figure chart of HRL, below, I can see a downside price target in the $10 area.
In this weekly Point and Figure chart of HRL, below, a price target of $10 is shown.
Bottom-line strategy: I will continue to buy some of HRL's iconic products but I will avoid the long side of the shares as further declines look likely.
