Will Mondelez Finally Buyout Hershey?

This isn’t the first time that Hershey (HSY Quick QuoteHSY - Free Report) has been approached by Mondelez (MDLZ Quick QuoteMDLZ - Free Report) . MDLZ tried to take over in 2016 but was ultimately rebuffed. This time around, both companies admitted that we are in the early stages of takeover talks. That led to a market halt today shortly after 10am, sending the stock up 10.8% on the day to $193.65.

It had traded as high as $208.03 on the session. This is a stock that was trading near $280 as recently as May 2023. Following its last earnings report, Hershey’s shares came down under $170. In retrospect, that was probably a great point to load the boat on a relatively conservative stock idea.

Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.

Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.

Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.

Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.

Dave Bartosiak's technical analysis approach adds depth to our understanding Hershey’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.