Category: Submitted Articles

In late June, shares of the Hershey Company (NYSE: HSY) skyrocketed higher upon receiving a $23 billion takeover bid from Mondelez International (NASDAQ: MDLZ). Hershey rejected the deal, but their share price maintained at these new all-time highs around $110 for two months as investors expected a higher bid to emerge. Two days ago, that hope died for those investors when Mondelez decided to no longer pursue Hershey, and $HSY quickly sank 10%!

For the smart investor, who didn’t buy in to the hype and hope, the low risk buying opportunity is now near. A strong technical support level is coming up at about $95 where the 200 daily moving average aligns with an up-sloping trend line I’ve drawn in the chart below. The 200 moving average is quite powerful by itself. Combine it with a major trend line, and the support level strengthens significantly. I’d expect a decent bounce off this level up to the $104 area.


By Pro-Trader

Caralee Carlson

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