Hilton Food Group plc: Will HFG Stock Escape Inflation in the UK?

• Hilton Food Group appoints new CEO.
• HFG stock price is contesting the 200-day EMA.
• The year-to-date return of HFG stock is 18.59%, and the three-month return is 0.45%.

The UK seafood maker Hilton Food Group announced the appointment of Steve Murrells as its new chief executive officer. He succeeded Philip Heffer and assumed the CEO role from 3 July 2023. However, the new appointment comes after the company pointed to challenges in its UK seafood business. At the same time, the UK is suffering from high inflation and a shortage in the global supply chain.

Hilton Food Group stock swung downwards after achieving an annual high at £774 on 23 May 2023. The stock price declined about 20% in one month, forming lower lows and lower highs. It has rejected the 20, 50, 100, and 200-day EMAs during that downtrend phase and lazed about at the £614 support level. 

On a broader time frame, HFG stock has experienced a notable upswing of approximately 17% from its low point at £614. This reflects positive returns over the past three months, amounting to 0.45%, and over the past month, with a gain of 2.49%.

In the most recent trading session, HFG stock recorded a modest increase of 0.29% and is currently trading at £680. However, it is now approaching a critical juncture at the 200-day EMA. Nevertheless, the stock’s price encounters difficulties in maintaining positions above the 20, 50, and 100-day EMAs. There’s a possibility that if the current candle’s low is breached, the price could encounter resistance at the 20 and 50-day EMAs.

On the contrary, if the next candle breaks the current candle’s high, the price might surge towards the previous resistance level of £690. Meanwhile, the possibility of retesting the 200-day EMA will increase. The market capitalization of Hilton Food Group plc is £606.5 Million, with an average volume of 264.88K shares.

Will HFG Stock Retest £698 Mark?

The Chaikin money flow (CMF) score has been trading below the 0 mark since 31 August 2023, indicating a solid confluence of bears, which shattered the price action. CMF stands at -0.17, suggesting sluggish weakness in the HFG stock price.

The RSI (relative strength index) has been hovering above the 50 mark since 25 August 2023. The RSI is at 51.45 during the intraday trading session. It reflects the rise of buyers’ participation in the market and suggests that a relief rally is possible.

Conclusion

The market structure of Hilton Food Group (HFG) stock has experienced a bullish trend with a drag race, while attaining several resistance and support levels. Meanwhile, there is a hope that the price will achieve or at least retest the annual high in the future.

Technical Levels

Major resistance: £750 and £774

Major support: £614 and £538

Disclaimer

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