Technical Signals Point to a Possible Breakout for HERSHEY CO/THE.

Our stock screener has identified HERSHEY CO/THE (NYSE:HSY) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:HSY.

Deciphering the Technical Picture of NYSE:HSY

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Overall HSY gets a technical rating of 7 out of 10. Although HSY is a bad performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• In the last month HSY has a been trading in the 187.07 - 203.23 range, which is quite wide. It is currently trading near the high of this range.
• HSY is part of the Food Products industry. There are 91 other stocks in this industry, HSY did better than 50% of them.
• HSY is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so HSY is lagging the market slightly.

Check the latest full technical report of HSY for a complete technical analysis.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:HSY scores a 9 out of 10:

HSY has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 207.05. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 198.15, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for HSY in the last couple of days, which is a good sign.

How can NYSE:HSY be traded?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

More breakout setups can be found in our Breakout screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.