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Hershey (HSY) Recently Broke Out Above the 50-Day Moving Average

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After reaching an important support level, Hershey (HSY - Free Report) could be a good stock pick from a technical perspective. HSY surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.

One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.

HSY could be on the verge of another rally after moving 8.8% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.

The bullish case solidifies once investors consider HSY's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 7 higher, while the consensus estimate has increased too.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on HSY for more gains in the near future.

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