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what the charts say

Hershey Co. traded in an up-trend above its 40-week moving average (40wMA) for several years. However, more recently, the stock violated its long-term rising trend-line (dashed line); the most recent rally could not match or exceed the recent high (B); and it also violated its 40wMA for the first time since the beginning of this up-trend. These violations suggest the start of a new down-leg (C). Hershey is currently in the midst of a minor recovery rally toward around $94 (U.S.), but only a sustained rise above around $100 would cancel the current downside risk.

Point & Figure measurements provide targets of $85 and $75. Lower targets are visible.

Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.