Remember back in June when Mondelez International (NASDAQ:MDLZ) made a $23 billion takeover bid for Hershey Company (NYSE:HSY)? The stock jumped from around $96 to $112. The bid was quickly rejected as analysis focused on the problems of a trust running a company. I kept the stock on my radar, waiting for signs of a pullback. But they never came. In fact I started saying that the stock looked more like it was ready for another move higher.
That move looks like it's underway right now. The chart below shows how a pop higher to consolidation between 108 and 112 has started to drift to the upside. The momentum indicators are improving. The RSI is turning back higher and the MACD is starting to level and remains positive. The Bollinger Bands® have tightened back to the point just before the move higher started back in May.
A Measured Move higher would target 125 above. There is some interest information in the longer-dated November and January Calls as well. The biggest open interest in November is at the 120 Call Strike and in January there is big open interest at the 119 and 130 Strikes. There is also open interested accumulated from 90 to 105 on the Put side in January. September monthly options are big, near the current price with big open interest at the 110 Calls and 115 Puts.
None of this means that anything will happen with this stock but there does seem to be a lot of upside interest after the September expiry. And the price and momentum are shifting higher.
So if you were to forgot about the prior narrative and just follow price, you'd probably buy this stock now for a break out.