The American chocolate and sugar candies producer could bounce one more time after the test of the ascending trend line.

Financials on the company are encouraging. Hershey increases its activities both in United States and abroad. “Surperformance” ratings as its business predictability and profitability provide a positive outlook on the American chocolate based products maker. Otherwise, sales should rise to $7.6 billion this year for a total increase of 6% over prior year figures. Margins growth at a constant pace since 2008 and the positive trend should keep going on a 3-year horizon. The consensus among analysts remains buyer on Hershey, at the same time its EPS have been upwardly revised, thus earnings of $4.1 per share are expected for the ongoing fiscal year and $4.54 per share for 2015.

Technically, stock prices evolve within a long run bullish trend. The recent test of the USD 96 support and the ascending trend line should trigger a bullish reversal as it has done every time this pattern appears since 2010. In the past few days, the equity got oversold but now as this territory has been kept there is place for an upturn. All weekly moving averages argue for a revival in prices and a renewed interest on Hershey’s shares.

Investors could take a long position considering that a bounce in prices is about to appear, thus targeting the USD 102 in the short term. The stop loss could be placed below the support line at USD 93.9.