Is Smithfield Foods Trade Over?

Published on Tuesday, 03 January 2012 04:15 Written by Danny Miller

New York, January 3rd (TradersHuddle.com) - Shares of Smithfield Foods, Inc. (NYSE:SFD) ended the trading session lower by $0.21 or -0.86% from its previous close. Smithfield Foods' price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Smithfield Foods, Inc. (NYSE:SFD) engages in the production and marketing of fresh meat and packaged meat products. The company processes pork and produces hogs through its meat processing and hog production groups. Smithfield also produces and markets a range of branded food products such as frozen barbecues and chilies, peanuts, and pork products.

Smithfield Foods' current stock range is defined by calculated support defined at $23.50 and by the resistance level at $25.08, which should be used by traders planning their trades.

Traders wanting to establish a position in Smithfield Foods stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Smithfield 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: