Tyson Foods Inc. (TSN) matched its June-quarter earnings forecast and gave optimistic guidance on export markets in 2020. In response, the stock is outperforming the overall market in early trading Monday. Let's check out the charts and indicators.
In the daily bar chart of TSN, below, we can see a rally from late December to May and a sideways consolidation pattern from May to now. Prices are near the apex of this sideways pattern and the 50-day moving average line is flattening.
The daily On-Balance-Volume (OBV) line has trended higher from February and continued to rise even during the consolidation pattern. A rising OBV line tells us that buyers of TSN have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is close to the zero line and could turn upward if prices strength in the days ahead.
In the weekly bar chart of TSN, below, we can see that prices are retesting the highs of late 2017. TSN is above the rising 40-week moving average line.
The weekly OBV line shows a rise from the first quarter of 2017 but some weakness the past three months. The MACD oscillator has crossed to the downside from well above the zero line. This is a take profits sell signal.
In this Point and Figure chart of TSN, below, we can see an upside price target in the $85-$86 area. A decline to $78.26 will likely weaken this chart.
Bottom-line strategy: If TSN can rally in the face of broad market weakness it will be impressive. Aggressive traders could go long on strength risking a close below $78. The $85-$90 area is our first price target.