Vladislav Shchukin
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Tyson Foods Inc. Short.

  

 Today we would like to talk about shares of the company, which is one of the leading players in various meat products. This is Tyson Foods Inc. In our opinion, technical analysis of quotes is the most appropriate in this case.

   First of all, it can be seen that for a certain period the movement takes place as soon as the company's stock punch price range. Support and resistance lines mark price limits on the chart (Figure 1). Changing trend of Tyson Foods Inc. shares is surprisingly stable. Price almost does not resist change in trend crossing the range. As can be seen from the chart, the price has passed the support line and begins a new decline at the moment.

 Fugure 1

  Moving average trading volume also confirms the new trend: the curve has passed the zero line and became closer to the value -20 (sales).

   The last graph in Figure 2 represents the Directional Movement Index. In early November, the maximum value of the uptrend has been completed, then send the intersection of two lines of DMI, which is typical when trend changes.

Figure 2

   We supplement the analysis of the movement of the oscillator indicator RSI and MACD (Figure 3). Dumping shares can be seen on both lines. MACD is reduced to the level of 0.6 (overbought) to the equilibrium zero line.RSI start moving from the mark 60 and down to 45, which is close to the 30 (oversold). The change in historical trading volumes is fully consistent with the change of the trend: increase in sales begins during the decline.

Figure 3

   In addition, we can see “Triple Tops” (figure 4), so upward trend which took place previously will and already has(have) been replaced by downward. According to the theory of technical analysis fall will be at least by distance of the highest point and figure bottom that accounting for more than 3$.

Figure 4

   All in all, our recommendation is "short" as we expect a price will drop to $ 40.5-41