Sanderson Farms, Inc., an integrated poultry processing company,
produces, processes, markets, and distributes fresh, frozen, and
prepared chicken products in the United States. The company sells ice
pack, chill pack, bulk pack, and frozen chicken in whole, cut-up, and
boneless form primarily under the Sanderson Farms brand name to
retailers, distributors, and casual dining operators in the
southeastern, southwestern, northeastern, and western United States, as
well as to customers who resell frozen chicken in the export markets.
Its prepared chicken product line includes institutional and consumer
packaged partially cooked or marinated chicken items for distributors
and food service establishments.
Take a look at the 1-year chart of Sanderson (NASDAQ: SAFM) below with my added notations:
SAMF had formed a key support level at $75.00 (green) over the past 5
months. In addition, the stock is declining against a short-term, down
trending resistance level (red). These two levels combined had SAFM
stuck within a common chart pattern known as a descending triangle.
Eventually, the stock had to break one of those two levels, and
yesterday SAFM broke through the support.
The Tale of the Tape: SAFM broke its $75.00 triangle
support. A short trade could be made at or near $75.00. A break back
above the prior support could be an opportunity to enter a long trade.
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