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Tyson Foods Inc. is moving well this morning.  The stock’s 5% gain puts it at the top of the S&P 500 gainers list.  It appears a breakout is brewing after months of consolidation.  TSN remains range bound, but a move, maybe a significant one, may be about to begin. 

TSN has been trading in a tight range since mid April.  Unlike the bulk of the S&P 500 Index the stock’s rebound off the March lows has been quite subdued.  As summer as dragged on TSN’s range as tightened as it sat nearly 35% below the 2020 peak.  This sideways action has kept shares well below overbought levels(daily MACD) indicating a fresh rally leg could carry the stock sharply higher. 

We believe TSN is set up as a low risk buy at current levels.  A key hurdle is an overhead trend line that links the June/August highs.  Once clear the stock will have to battle a downward sloping 200D moving average($69).  This key level may not pose a problem due to the length and narrowness of the current consolidation.  On the downside, a close back below $60.00 would violate the September lows indicating more sideways action will be needed before TSN can mount a measurable rally. 

No positions.