In our previous look at Hormel Foods (HRL), I suggested getting ready for a bullish breakout because price action appeared to be building a bottom. However, HRL missed earnings estimates for Q2, and the market sold the stock sharply. Let's take a look at a summary of the earnings report, and then the reaction of stock prices.Exceprt from Zacks.com,Earnings: HRL miss on earnings. Adjusted earnings per share came in at 39 cents per share, a penny lower than the the Zacks Consensus Estimate of 40 cents.Revenue: Revenues of $2,187.3 million came below the Zacks Consensus Estimate of $2,222 million.Key Stats: HRL has reaffirmed its full-year fiscal 2017 earnings guidance within the $1.65 -$1.71 per share range. However, the company perceives that weak performance of its Jennie-O Turkey Store business segment might push the actual fiscal earnings towards the lower end of the anticipated range. Lower turkey prices, increasing operating expenses and pricing pressure on competing proteins are expected to weigh over the segment’s profitability in the upcoming quarters of the current fiscal year. However, the company is poised to grow on the back of its balanced business model.Hormel Foods (HRL) Daily Chart(click to enlarge)Sharp Dip to Threaten a Breakout:- Now price fell so sharply that it didn't really stay around 34.50, which is where I suggested a buy. - If price did stall around 34.50 or even 34, it would have meant that the market was initially bearish, but still respects the range its been in since March. In turn, this maintains at least a neutral outlook if not bullish. - However, price dipped sharply and broke the multi-month consolidation range. - It is essentially now threatening to break a long-term range seen in the weekly chart. Downside and Resistance:- In the weekly chart, we see stronger bearish weekly candles than bullish ones, especially when we include the current week's candle.- This means bears are in charge, and we should anticipate further downside.- While, we might look for support around the falling wedge support, I think we should anticipate a slide towards 29.50-30. - This is a support/resistance pivot area created after a multi-month consolidation in 2015.- Also, if price rebounds, look for resistance from the consolidation HRL just broke below. 34, the range support, might become resistance.Hormel Foods (HRL) Weekly Chart(click to enlarge)