The Hershey Co. (HSY) was rated a new outperform (buy) rating by TD Cowen Wednesday, but the charts suggest there is further risk of prices weakening from here.
Let's review the charts.
In this daily bar chart of HSY, below, I can see that prices have slumped lower for more than four months. HSY trades below the negatively sloped 50-day moving average line and below the bearish 200-day line.
The On-Balance-Volume (OBV) line turned lower in early May and tells me that sellers of HSY have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is bearish.