Hershey Stock Jumps 3.19% As Technicals Signal Bullish Reversal

The Hershey (HSY) advanced 3.19% to close at $166.91 on June 9, 2025, with trading volume reaching 1.68 million shares. This analysis evaluates the technical landscape across multiple frameworks to assess potential future price behavior.
Candlestick Theory
Recent candlesticks suggest a bullish reversal pattern. The June 9 session formed a robust green candle closing near its high ($167.45), following a hammer pattern on June 6 (low: $160.87, close: $161.75). This signals rejection of lower prices near the $161 support zone. Immediate resistance is observed at $167.45 (June 9 high), with secondary resistance at the May 29 peak of $162.57. The $160–$161 area now acts as a consolidated support floor, having been tested five times in early June. A decisive close above $167.45 could trigger further upside, while failure to hold $160 may renew bearish pressure.
Moving Average Theory
The 50-day moving average (near $168) converges with the 100-day MA ($171) and 200-day MA ($178), reflecting persistent bearish sequencing. Price remains below all three averages, signaling ongoing intermediate-term weakness. However, the 50-day MA has flattened after a steep decline, hinting at potential trend stabilization. A bullish MA crossover appears premature, but sustained trading above the 50-day level could challenge the 100-day resistance.
MACD & KDJ Indicators
MACD (12/26/9) has exhibited a bullish crossover, with the histogram turning positive for the first time since May. This aligns with the KDJ oscillator, where the J-line (not shown) surged above 50 from oversold territory. While both indicators suggest budding momentum, their position near the zero line (MACD) and mid-range (KDJ %K: ~65) warrants confirmation. The lack of divergence reinforces recent gains but does not yet indicate overbought exhaustion.
Bollinger Bands
Volatility expanded sharply during the June 9 breakout, with price touching the upper band ($168) after a multi-week squeeze. This compression-resolution event typically precedes directional trends. Acceptance above the 20-period midline ($164) supports the bullish impulse. Continued upper-band proximity may signal short-term overextension, but consecutive closes above $165 would validate the breakout.
Volume-Price Relationship
The 3.19% rally occurred on the highest volume in ten sessions (1.68M shares vs. 1.11M prior), lending credibility to the breakout. Notably, the May 29 reversal candle—marking a swing low at $154.37—saw even stronger volume (2.39M shares), establishing a distribution floor. Volume patterns broadly validate the recovery attempt, though follow-through volume above the 10-day average remains critical.
Relative Strength Index (RSI)
The 14-day RSI currently reads 61, rebounding sharply from oversold levels (<30) in late May. Momentum is recovering but not yet overbought (70+). This aligns with the price structure by allowing room for additional upside before warning signals emerge. The absence of bearish RSI divergence during June’s higher lows further supports stabilization.
Fibonacci Retracement
Using the December 9, 2024, high ($208.03) and February 5, 2025, low ($140.13) as anchor points, key Fibonacci levels emerge: 23.6% ($156.70), 38.2% ($164.20), and 50% ($174.10). Price has decisively cleared the 23.6% retracement, with the June 9 close above the 38.2% level ($164.20) indicating bullish momentum. This level now flips to support. The 50% retracement ($174.10) aligns with the 100-day MA, creating a logical profit-taking zone.
Confluence and Divergence
Confluence supports near-term bullishness: The Fibonacci 38.2% level ($164.20) coincides with Bollinger Band midline support and the recent resistance break. Volume expansion, MACD crossover, and RSI recovery collectively endorse upward momentum. The only notable divergence is the price’s position below key MAs amid improving oscillators—a condition that may cap rallies until the MA structure improves. Should HSY hold above $164 and attract volume-backed follow-through, a test of $174 becomes probable. Conversely, failure below $160 would invalidate the reversal thesis and expose February lows.