Are the Bears Taking Control over United Natural Foods?

Published on Thursday, 29 December 2011 04:06 Written by Christopher Lynn

New York, December 29th (TradersHuddle.com) - Shares of United Natural Foods, Inc. (NASDAQ:UNFI) ended the trading session lower by $0.66 or -1.65% from its previous close. United Natural's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

United Natural Foods, Inc. (NASDAQ:UNFI) is an independent national distributor of natural and specialty foods and related products. The Company offers natural products consisting of groceries and general merchandise, nutritional supplements, bulk and foodservice products, personal care items, perishables, and frozen foods.

United Natural's current stock range is defined by calculated support defined at $35.85 and by the resistance level at $40.27, which should be used by traders planning their trades.

Traders wanting to establish a position in United Natural Foods stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current United Natural Foods shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: