Hershey Co
To fully understand this shift, it is essential to examine the stock's performance over the past year before the decline.
Hershey's stock experienced an impressive surge of 24% in the three months leading up to the peak in May 2023.
This surge not only showcased remarkable growth but also set new record highs for the company, creating a perception of invincibility in the market.
Inevitably, stocks go through corrections, and Hershey's stock is no exception.
Recently, the stock experienced a substantial decline, shattering significant psychological support levels. Remarkably, it plummeted below the $200 mark and even dipped below the 2022 low of $190.
Despite this, some stability was found when the stock reached the weekly 200 simple moving average at approximately $184.
Hershey's Q3 earnings report on October 26th was a game-changer. Despite beating the estimated $2.45 earnings with $2.60 per share, the stock saw a 2.80% decline.
Since hitting its lowest point in October 2023, Hershey's stock has shown impressive resilience and is steadily climbing.
It has seen a significant 7% increase, marking its biggest upward movement since the recent downturn.
This rebound is especially remarkable as the stock prepares to break through the critical $200 psychological level, which is currently acting as a resistance.
A breakthrough above this level could indicate further positive momentum.
Hershey's recovery is likely to be further supported by the current market conditions. The overall stock market, as measured by the S&P 500, is experiencing an upward trend.
Additionally, on November 14th, the S&P 500 showed a significant increase of almost 2%. This surge can be partly attributed to the possibility that the Federal Reserve will not raise interest rates.
If this monetary policy continues, bullish momentum in the stock market is likely to be maintained and could contribute to Hershey's recovery.
After the closing bell on Friday, November 24, the stock closed at $236.17, trading down by 0.75%.
