News Breaks
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| 13:00 EDT |  | HRL |
| theflyonthewall.com: | Hormel Foods: Earnings release technical preview, bull pattern, gap risk | | BULLISH CASE: There is a potential bullish, inverted, head and shoulders on the daily chart that will become active on a breakout above the $39 area. Upside potential is to the $43 area. On better than expected news/outlook the stock could trade to the upper limit of the bullish price channel at $39. On a bullish breakout above the price channel the following resistance levels would become upside objectives: $39.66, $40.73, $41.75, $42.49, $42.77 -- lifetime high. Additional upside objectives, based on average range, may be at the following levels: $43.63, $44.50, $45.39. BEARISH CASE: On worse than expected news/outlook the stock could trade to the lower limit of the price channel at $38.32. On a bearish breakdown below the price channel the following support levels would become downside objectives: $37.14, $36.58, $35.99, $35.44, $34.83, $34.58, $33.73, $33.10, $32.58. NOTE: Large short-base at 4 days to cover, with 3.8% of the float short. Traders are positioned for negative news. Reactions on a surprise, especially a positive one given the potential bullish pattern and large short-base, have a high probability of being extreme in duration and price. High gap risk. :theflyonthewall.com |
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