Tyson Meals (TSN) was downgraded to underperform from impartial (promote from maintain) at a significant sell-side agency. This comes forward of subsequent week’s launch of quarterly outcomes. The inventory value goal is being reduce to $61 from $73.
Let’s take a look at the charts and indicators.
On this day by day bar chart of TSN, beneath, we will see a weak image. Costs made a lopsided double high sample in February and April earlier than turning decrease. The 50-day transferring common line crossed beneath the 200-day line in June for a lifeless or dying cross promote sign. Costs continued decrease and commerce beneath the bearishly sloped 50-day transferring common line. An October bounce stopped in need of the declining 50-day line in November.
The On-Steadiness-Quantity (OBV) line has been weak since February and tells me that sellers of TSN have been extra aggressive for a lot of the previous 12 months. The Transferring Common Convergence Divergence (MACD) oscillator is beneath the zero line and narrowing in direction of one other promote sign.
On this weekly Japanese candlestick chart of TSN, beneath, we see a weak setup. Costs are in a longer-term decline beneath the declining 40-week transferring common line. The weekly OBV line has been in a decline since February. The MACD oscillator is in a bearish alignment beneath the zero line however making an attempt to slim. One of the best we will hope for is a canopy shorts purchase sign.
On this day by day Level and Determine chart of TSN, beneath, we will see a possible draw back value goal within the $58 space.
On this second Level and Determine chart of TSN, beneath, we used weekly value information. Right here the draw back goal turns into $38.
Backside line technique: Bearish charts and indicators, after which the information story about their CFO being arrested after lower than six weeks on the submit. Rooster Little would say that the “sky is falling.” Keep away from the lengthy facet of TSN.