For nearly 2 years, the price of HSY has been falling , from a high of 280 to a 50% fall of 141 before it climb back up recently to 175. It is still in the downtrend as shown on the weekly chart.
Yesterday, it rally near 6% , a welcoming surprise to its shareholders. With continuing drop in cocoa price, I believe we could see a breakout from the bearish trend for HSY.
208 will be a strong resistance/profit target for some traders/investors.
Other risks that HSY may face is the anti obesity drive by various governments worldwide. So, indulgent foods like chocolate may take a backseat or consumers may choose to replace it with healthier options or reduce their chocolate purchase. The year end is coming, Christmas and New Year where giving chocolates as gifts are common. This will be an important time for HSY and other confectioneries.
LONG HSY, SHORT COCOA
Please DYODD
Yesterday, it rally near 6% , a welcoming surprise to its shareholders. With continuing drop in cocoa price, I believe we could see a breakout from the bearish trend for HSY.
208 will be a strong resistance/profit target for some traders/investors.
Other risks that HSY may face is the anti obesity drive by various governments worldwide. So, indulgent foods like chocolate may take a backseat or consumers may choose to replace it with healthier options or reduce their chocolate purchase. The year end is coming, Christmas and New Year where giving chocolates as gifts are common. This will be an important time for HSY and other confectioneries.
LONG HSY, SHORT COCOA
Please DYODD
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.