Tyson Foods (NYSE:TSN) is trading around $35.54, -1.96. In the last six trading days the stock has fallen from near $44 per share. This is a monster collapse for Tyson Foods and one that warrants major attention. The large drop is being blamed mostly on its buyout of Hillshire Brands Hillshire Brands (NYSE:HSH).
Consensus
The general consensus is that TSN overpaid. As most investors run for the hills, the smart money is beginning to scope out a buy level. And That level is fast approaching. The daily chart has the 200 moving average at $35.24, and just below at $34.54 there is a major gap fill. Tyson Foods will get a major bounce in this range, likely north of $37.75. While perhaps overpaying for Hillshire Brands, Tyson Foods is getting into very oversold territory and will be solid swing trade long soon.