Hormel Foods Corporation (HRL) has jumped to a new record high at $50.51 on April 17, 2020.
The Austin-based 27 billion market cap packaged food company belongs to U.S. Dividend Aristocrats. Its dividend is currently yielding 1.85 percent whose CAGR has been 9.90 percent since 2016 growing from $0.145 to 0.2325 per share.
HRL started a long-term bullish pattern in the first months of 2013 which has been ongoing since then in daily, weekly and monthly settings, with a monthly support at around $29.70 and a monthly resistance at around $51.70.
However, weekly and monthly RSI both show a potential bearish divergence since the price keeps growing while the RSI over the last trading sessions has been lower since February 2, 2020 on the weekly chart and since November 1, 2018 on the monthly chart.
Also, the daily momentum currently shows a potential bearish divergence since HRL jumped from $39.66 on March 12, 2020 to $48.54 on March 19, 2020 while searching for a new top up to $51.53.
Such indications should fuel some caution for the investors who played the massive rebound over the last 30 days, and Cyceon evaluates HRL’s fair price could be around $38-$41 instead.
Contents published on Cyceon.com do not constitute investment advice.
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