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Hasbro Inc (HAS) and Mattel (MAT) Rebound as Acquisition Talk Heats Up

Hasbro $HAS has been falling even before Toy's R US filed for bankruptcy. But recently, it found support around 88.00 after Hasbro made an offer to acquire Mattel $MAT (maybe 3rd time is the charm). 

HAS Daily Chart

(click to enlarge)

Key Resistance:
- After finding support at 88.00, HAS has been rebounding sharply. 
- But now, there is a key resistance around 99.60-100. 
- This is a psychological level and resistance. 
- It is also a confluence of common resistance 200- and 100-day simple moving averages (SMA).
- The RSI is around 60, and if the market is still bearish, it should probably turn back down soon. 
- A break above 100 on the other hand could be a sign that HAS is not longer bearish.

MAT Daily Chart

(click to enlarge)

Bullish Reversal Attempt:
- After a persistent downtrend in 2017, HAS umped after HAS started talks again to acquire MAT.
-  If we see a pullback and the market holds MAT about the 14.50-15 area, then we can expect some more upside. 
- The RSI in this scenario should stay above 40. 
- In the short-term, there is a lot of resistance around 20, so we should limit that as the maximum outlook for now.