Hormel Closing in to Resistance

Published on Wednesday, 10 March 2010 08:08 Written by Christopher Lynn

New York, March 10th (TradersHuddle.com) - Shares of Hormel Foods Corporation (NYSE:HRL) are trading very close to calculated resistance at $42.68 with the current price action closing at just $41.68 placing the stock near levels that make it difficult to buy.

Hormel Foods Corporation (NYSE:HRL) manufactures and markets consumer-branded meat and food products. The Company processes meat and poultry products and produces a variety of prepared foods.

Hormel's current stock range is defined by current calculated support defined at $37.08 and by the resistance level at $42.68, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Hormel, as the stock is well above support, however, as the stock pulls back towards $37.08 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $42.68 then traders will get an opportunity to enter Hormel stock by establishing a position as the stock moves to a higher range.