HRL is poised for a contrarian breakout
Based upon the analysis above in HRL, traders should make sure that their portfolio can handle increased risk from a new trade. Also be sure that HRL adds diversification to your current account. Lastly, good traders note how a new addition relates to not just their portfolio but the rest of the market action as well. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Be sure to coincide your trading actions on HRL in relation to the overall market as well.
Currently the proprietary sentiment levels, analysed by Traders For Wealth, have shown an increasingly negative bias toward HRL. However, the price action in HRL has been moving up in value. This could be a contrarian sign to traders for a potential reversal. Traders should view this as a bullish contrarian trade and make sure it aligns with the market and their portfolio.
Hormel Foods Corp (HRL)
Hormel Foods Corporation is a multinational manufacturer and marketer of food and meat products. The Company operates through five segments: Grocery Products, which consists of the processing, marketing and sale of shelf-stable food products sold in the retail market; Refrigerated Foods, which consists of the processing, marketing and sale of branded and unbranded pork and beef products for retail, foodservice and fresh product customers; Jennie-O Turkey Store, which consists of the processing, marketing and sale of branded and unbranded turkey products for retail, foodservice and fresh product customers; Specialty Foods, which consists of the packaging and sale of private label shelf stable products, nutritional products, sugar and condiments to industrial, retail and foodservice customers, and International & Other, which includes the Hormel Foods International Corporation, which manufactures, markets and sells the Company products internationally.