The Hershey Co. (HSY) just recently gapped down on earnings breaking through a daily uptrend line and challenging its previous uptrend.
GAP REVIEW
On July 16, 2014, HSY gapped down taking out the $94.00 support level. The stock immediately sold off and pressed down into the $91.00. It has since bounced up into $93.00 area.
KEY LEVEL
Since breaking its key support level at $94.00 the stock will be hunting for new demand and price support. The next major demand level is around $85.00. I would make this my new target area being short.
THE TRADE
Short under $92.10, stop over $94.20 and a target of $85.00. Risking 2.10 to make 7.10 and that would give you a 3.38 R win.
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Disclosure my Swing Newsletter Subscribers have the same alert.
