Hormel Foods Corp. (HRL) is known around the world for their Spam product as well as Skippy peanut butter. The company reported their latest quarterly numbers Wednesday morning and investors appear disappointed about their 2023 guidance and comments about costs.
Let's check on the charts and indicators.
In this daily bar chart of HRL, below, we can see that prices have made lower highs from April. Currently prices are back below the 50-day and the 200-day moving average lines. The slope of the 50-day is rising but the 200-day line has been declining.
The On-Balance-Volume (OBV) line looks like it made a top in August. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but is crossing to the downside for a take profit sell signal.
In this weekly Japanese candlestick chart of HRL, below, we see a mixed picture. Prices look like they have outlined a large descending triangle formation the past year. HRL seems to be getting buying interest in the $45-$44 area so if that zone breaks we are likely to see further selling. Trading volume looks like it has decreased over the past year and that is typical for triangle patterns.
The weekly OBV line has been steady for the past year with an uptick in the past two months - strange. The MACD oscillator has crossed to the upside for a cover shorts buy signal.
In this daily Point and Figure chart of HRL, below, we can see a potential downside price target in the $34 area.
This second Point and Figure chart of HRL, below, uses weekly price data and comes up with the same price target of $34.
Bottom line strategy: I am not sure what aisle you will find HRL's products but I would steer clear of the long side of the stock for now.
