Leading food products stock, Hormel Foods Corp (HRL), is coming under some heavy selling pressure after reporting earnings. The company lowered fiscal year 2021 EPS guidance. They also cited inflationary pressures in all areas of the business. This news has the stock trading lower by 4.7% to $43.50 a share. Hormel Foods (HRL) stock is now trading in a down-trend on the daily chart. The stock has also fallen below its important 50 and 200-day moving averages which puts the stock in a weak technical position.
The next major support level for Hormel Foods (HRL) stock will be around the $40.00 level. This major support area is where the stock broke out to the upside in March 2020. That past breakout occurred with very heavy upside volume and that level has not been tested yet. This makes this $40.00 area extremely strong support when tested.
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