This chocolate stock is beginning to turn around after steep two-month slide. How to capitalize on it

Hershey (HSY) has taken a massive 25% hit in just two short months, dropping from its March 1 peak of $239.48. Fortunately, the company's April 30 earnings report provided some much-needed relief, showing a solid jump in first-quarter sales and revenue. The stock is finally starting to claw its way back, creating an ideal scenario for a mean reversion play. However, a steep sell-off does not automatically guarantee a rebound. That is exactly why I rely on strict technical analysis to provide objective entry signals, rather than risking capital on a gut feeling. To time this setup, I am focusing on three specific indicators: Custom MACD (5, 13, 5): I use this tightened MACD configuration to flag momentum shifts long before standard indicators trigger. We saw a definitive bullish crossover on May 4. Since that moment, the trajectory has remained solidly positive, with the blue line pushing clearly above the yellow signal line to confirm the strength of this new upward momentum. Relative strength index (RSI): Back on April 14, HSY saw its RSI plunge below the critical 30 threshold, officially pushing it into oversold territory. Plunging below this line is never an automatic buy signal for me. I demand proof that the stock can actually climb back out before I commit. We received that exact buy signal on May 5 when the RSI pushed back above 30, and it has maintained that upward trajectory ever since. …