Bulls in Charge of Nash Finch

Published on Friday, 13 August 2010 09:03 Written by Christian Paolinetti

New York, August 13th (TradersHuddle.com) - Shares of Nash Finch Company (NASDAQ:NAFC) ended the trading session higher by $0.96 or 2.45% from its previous close. Nash Finch's price action formed what is considered to be a bullish engulfing candle that could very well signal continuation of trend or reversal on ongoing weakness.

Nash Finch Company (NASDAQ:NAFC) is a food distributor that supplies products to independent supermarkets and military bases in the United States. The Company also owns and operates retail stores, principally supermarkets under the Econofoods, AVANZA, Family Thrift Center, Pickn Save, and Sun Mart trade names.

Nash Finch's recent stock range has been formed by a trough where calculated support was defined at $38.52 and by a peak that established the resistance level at $41.07, which could be used by traders planning their trades.

Traders wanting to establish a position in Nash Finch or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk as it shows where the bears were able to push the stock down, before the bulls stepped in.

The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration: