NEW YORK (TheStreet) -- The appetite for Spam and other processed meats continues unabated in this country, as reflected in the share price of Hormel Foods (HRL) - Get Report. The stock has been in a long-term uptrend, and after a recent consolidation phase, it looks ready to break out and continue higher.   

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The consolidation began in March, after the stock pulled back to a 50% retracement of this year's range, and bounced but failed to make a new high. The April low retested that retracement level. The level held a second time, and then the stock began to make a series of higher lows below the flat $58.50 resistance level. That process of higher lows under static horizontal resistance formed a bullish rising triangle on the daily chart.

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Moving average convergence/divergence has been tracking higher and is crossing above its centerline, and the relative-strength index moved over its centerline this month, reflecting positive price momentum. Accumulation/distribution is above its 21-period moving average, and Chaikin money flow, a 20-period average of the accumulation/distribution, is above its signal line and centerline, showing positive short- and intermediate-term positive money flow. The stock price penetrated triangle resistance on Wednesday and closed in its upper range, activating a buy trigger in the shares.

Hormel is a long candidate at its current level with a position size that allows for a trailing percentage stop under the 50-day moving average.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stock mentioned.