Tyson Foods - Positive repeats in RSI, MACD trends into 2020

2019년 12월 28일

Hello team,

Notice the price action, RSI and MACD levels during the previous time period within the black bars. These moves mimic the recent action in Tyson Foods showing me a strong technical tailwind for Tyson going into 2020 and earnings in Jan.

Looks like Tyson will test the highs in the next Month and should breakthrough.

Fundamentally, news has come out that Tyson is opening more plants across the globe while also scoring a potential contract to export meat to China. This could provide a nice boost during the next earnings call.

Tyson has a trailing P/E of 16.72 much lower than the SnP 500 - 20 and Consumer staples group - 22. This implies Tyson foods can ride the wave of global growth to a plus 25% gain in the next couple of years. I believe this breakout will start in the first months of 2020. Being a consumer staple stock with international reach, Tyson foods provides an interesting, safe and profitable trade potentially. The critics will talk about swinging commodity prices which Tyson has dealt with for decades. More so the global demand for beef and chicken will only increase as technology drives access to population-dense markets. Capitalizing on that might be difficult though...

Either way price action looks good and as Jim Cramer said "Tyson is feeding the world"

I am long Tyson and think it will be up 10%+ in 2020.