Hershey Plummets Below $200, Marking Its Steepest Decline In Nearly Two Years Amid Market Uncertainty

• Hershey's stock has experienced a significant decline, falling below the $200 level.
• Earlier in the year, Hershey's stock showcased a promising 20% rise but is currently down 15% for 2023.

Hershey Co.'s HSY stock price has spiraled downward, plunging below the crucial $200 level.

As a psychological level of support, this milestone now poses a formidable barrier above price for the iconic chocolate company.

The first half of the year told a different story. Hershey's stock was on an impressive upward trend, with a remarkable 20% increase, until May.

It seemed like nothing could stop its momentum, and many even anticipated greater heights. However, the stock market is known for its unpredictability.

Surprisingly, Hershey began its decline without any clear resistance levels being reached.

This downward trajectory started a full two months before the broader S&P 500 began its current correction phase.

Looking at the present situation, it's worth noting that Hershey's stock is now down 15% for the year.

The breach of the $200 support level has raised concerns among investors, creating a palpable sense of worry that the stock may continue to plummet.

However, all hope is not lost for this stock. A potential safety net emerges in the form of the weekly 200 simple moving average.

This technical indicator has historically played a crucial role in supporting the stock price during challenging times.

Looking back at the stock's performance, it becomes evident that this moving average offered significant support during March 2020, between March and August 2018, and again around January 2015.

When considering the aftermath of the March 2020 bounce, the significance of this support becomes even more apparent.

It led Hershey on a long-term upward trend, culminating in an impressive 151% bull trend. The rally reached its peak with an all-time high of $276.

When drawing parallels from historical trends, one might speculate that if the stock price gets close to the weekly 200 simple moving average, which is currently 100 points below the current price, a potential bullish trend could be on the horizon.

While it's important to note that past performance doesn't guarantee future results, the historical resilience of this stock in relation to this indicator offers a glimmer of optimism for investors.

Hershey's ability to harness this potential lifeline and reclaim its former glory remains to be seen.

Investors are closely monitoring how the price interacts with the weekly 200 simple moving average, eagerly awaiting the next opportunity to profit from a trend.

Time will tell if Hershey can seize this chance and rise to new heights once again.

After the closing bell on Friday, October 6, the stock closed at $195.04, trading down by 0.24%.