Move For Tyson Foods May Be About To Begin

Adobe Poised For Breakout |

Tyson Foods Daily Chart.

Tyson Foods (NYSE:) is moving well today. The stock’s 5% gain puts it at the top of the gainers list. It appears a breakout is brewing after months of consolidation. Tyson Foods remains range bound, but a move, maybe a significant one, may be about to begin.

Tyson has been trading in a tight range since mid-April. Unlike the bulk of the S&P 500 Index, the stock’s rebound off the March lows has been quite subdued. As summer has dragged on, Tyson’s range has tightened as it sat nearly 35% below the 2020 peak. This sideways action has kept shares well below overbought levels (daily MACD) indicating a fresh rally leg could carry the stock sharply higher.

We believe Tyson is set up as a low-risk buy at current levels. A key hurdle is an overhead trend line that links the June/August highs. Once clear, the stock will have to battle a downward sloping 200-day moving average ($69). This key level may not pose a problem due to the length and narrowness of the current consolidation. On the downside, a close back below $60.00 would violate the September lows indicating more sideways action will be needed before Tyson can mount a measurable rally.

Note: No positions.

You can read Gary S. Morrow’s original post here.

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Gary S. Morrow

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