Hershey Stock Extends Slide With 4.7% Drop To $161.95 Amid Bearish Signals

Hershey (HSY) concluded its most recent session at $161.95, marking a 4.70% decline and extending its losing streak to four consecutive days. This downturn has resulted in an 8.54% loss over the period, underscoring pronounced bearish momentum.
Candlestick Theory
The recent price action exhibits multiple bearish candlestick patterns. The latest session formed a long bearish candle closing near its low ($161.95 vs. intraday low of $161.5), signaling strong selling pressure. This follows a series of lower highs and lower lows since the peak of $169.45 on July 9. Key support now resides near $160–$161 (recent intraday lows), while resistance consolidates around $169–$170, aligning with the July 8–9 highs. A sustained break below $160 may accelerate declines, though oversold conditions could prompt consolidation.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages depict deteriorating trends. The current close ($161.95) sits decisively below all three averages, confirming a bearish posture. The 50-day MA (approximately $172) recently crossed below the 100-day MA ($178), forming a "death cross" that reinforces intermediate-term weakness. With the 200-day MA near $175 acting as overhead resistance, the moving average stack implies entrenched downward momentum.
MACD & KDJ Indicators
The MACD histogram remains entrenched in negative territory, with both the MACD line and signal line trending downward – indicative of accelerating bearish momentum. Meanwhile, the KDJ oscillator (particularly the %K and %D lines) has entered oversold territory, reflecting the intensity of the sell-off. While this could foreshadow a technical rebound, bearish MACD convergence suggests any recovery may be short-lived. Divergence is absent; both indicators align with the price downturn.
Bollinger Bands
Bollinger Bands have expanded sharply during the four-day decline, reflecting escalating volatility and directional selling pressure. Price is hugging the lower band, characteristic of a strong downtrend. The wider bandwidth compared to early July signals increased market anxiety. Support at the lower band near $160 is critical; failure here may trigger further downside, while stabilization could hint at exhaustion.
Volume-Price Relationship
Volume patterns validate the bearish move. The sell-off days (July 8–9) recorded notably higher volumes (1.92M and 3.52M shares) than recent consolidation periods, confirming distribution. The July 9 plunge occurred on the highest volume in two weeks, underscoring conviction behind the decline. This volume surge on down days signals institutional selling, reducing the likelihood of an immediate reversal without accumulation signals.
Relative Strength Index (RSI)
The 14-day RSI has plummeted to approximately 28, breaching oversold thresholds. While this hints at potential exhaustion, its reliability is tempered by the stock’s persistent downtrend. Bearish RSI trends since early July align with price deterioration. Historical reactions near oversold levels suggest possible stabilization near $160, but RSI divergence is absent, limiting predictive power for a reversal.
Fibonacci Retracement
Applying Fibonacci retracement to the swing low of $150.04 (February 22) and high of $177.55 (July 3) yields critical levels. The recent decline breached the 61.8% retracement ($161.50), closing marginally above it. This zone now serves as immediate support. A decisive break below risks a test of the 78.6% level ($159), with only a rebound above the 50% retracement ($164) offering technical relief. Confluence exists here, as the 61.8% level overlaps with the July 9 low and psychological support at $160.
Conclusion
Multiple indicators converge to depict a structurally bearish posture for Hershey. Confluence is observed at the $160–$161.50 support zone (aligning Fibonacci, candlestick, and Bollinger Band analysis). The absence of bullish divergences and confirmation from volume/MACD advises against anticipating an imminent reversal. While oversold conditions (KDJ, RSI) may foster a technical bounce, recovery prospects appear constrained below the moving averages and the $164–$165 resistance cluster. A breakdown below $160 would likely extend the downturn toward the $154–$155 area.