Friday, November 11, 2011 10:20:48 AM
Hersey - bouncing off support -
>>> A more traditional example of an uptrending channel is $13 billion chocolatier and food company Hershey (HSY), one of TheStreet Ratings' top-rated food stocks. The fact that shares are approaching trend line support right now makes HSY a solid name to watch for an optimal entry at support.
Again, the high probability trade in Hershey is to buy a bounce off of support and then to sell in advance of hitting trend line resistance. Risk management is paramount in any trend trade, and in Hershey’s case, that comes with a protective stop at the 200-day moving average. Once the 200-day gets punctured, we know that our trendline has broke, and the technical thesis for this stock is no longer in play. <<<
>>> A more traditional example of an uptrending channel is $13 billion chocolatier and food company Hershey (HSY), one of TheStreet Ratings' top-rated food stocks. The fact that shares are approaching trend line support right now makes HSY a solid name to watch for an optimal entry at support.
Again, the high probability trade in Hershey is to buy a bounce off of support and then to sell in advance of hitting trend line resistance. Risk management is paramount in any trend trade, and in Hershey’s case, that comes with a protective stop at the 200-day moving average. Once the 200-day gets punctured, we know that our trendline has broke, and the technical thesis for this stock is no longer in play. <<<
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