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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