Approaching Resistance - Hershey

Published on Tuesday, 31 January 2012 06:04 Written by Christian Paolinetti

New York, January 31st (TradersHuddle.com) - Shares of Hershey Company (NYSE:HSY) are trading very close to calculated resistance at $62.26 with the current price action closing at just $61.70 placing the stock near levels that make it difficult to buy.

Hershey Company (NYSE:HSY) manufactures chocolate and sugar confectionery products. The Company's principal products include confectionery and snack products; gum and mint refreshment products; and food and beverage enhancers such as baking ingredients, toppings and beverages.

Hershey's current stock range is defined by current calculated support defined at $55.32 and by the resistance level at $62.26, 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 Hershey, as the stock is well above support, however, as the stock pulls back towards $55.32 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 $62.26 then traders will get an opportunity to enter Hershey stock by establishing a position as the stock moves to a higher range.