Hormel Foods Dives After Earnings, Here’s The Trade

Earlier today, leading food products company, Hormel Foods Corp (HRL) reported earnings that failed to impress Wall Street. The popular food products stock is trading lower by $2.03 to $48.00 a share. Traders and investors should note that Hormel Foods (HRL) stock has now fallen below it’s important 200-day moving average. This puts the stock in a weak technical position on the charts and often indicates lower prices ahead for the shares.

Traders and investors should now watch the $46.00 level for major chart support. This key support area is where the stock formed a weekly chart base from April 2020 to June 2020 before breaking out to new all time highs. It is also a major retrace level from the March 2020 lows to the August 2020 highs. This combination of support should lead to a solid risk / reward long trade setup.

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