On August 24, 2018 (US$37.96), we suggested that Hormel Foods (Friday’s close US$50.18) had a breakout above resistance (shaded area) and provided Point & Figure targets of US$43 and US$47. Shortly afterward, Hormel rose to a high of US$46.25 essentially fulfilling our targets (A).
After a retest of its trend-line (solid line - B), it resumed the up-trend (C), and except for a temporary pullback below its 40-week Moving Average (40wMA) and below the rising trend-line (D), it rose and settled in a wedge pattern (dotted lines) and now appears to be resuming the up-trend (E).
Only a sustained decline below ±US$46 would be negative.
Point & Figure measurements provide targets of US$54 and US$59. Higher targets are visible.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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