Safeway Bears Firmly in Control

Published on Thursday, 19 July 2012 12:34 Written by TradersHuddle Wire

New York, July 19th (TradersHuddle.com) - Shares of Safeway Inc. (NYSE:SWY) booked a new 52 week low by trading below $15.71. Traders are definitely monitoring Safeway's price action to see if this move attracts further selling, or if this last push down sets a tradable bottom in the stock.

Safeway Inc. (NYSE:SWY) operates a grocery and pharmacy chain in the U.S. and Canada. The Company also has a network of distribution, manufacturing, and food processing facilities. Its retail operations are located in California, Oregon, Washington, Alaska, Colorado, Arizona, Texas, the Chicago metropolitan area and the Mid-Atlantic region, British Columbia, Alberta and Manitoba/Saskatchewan.

Safeway is currently trading -5.7% versus its previous trading session close, and it has calculated support and resistance at $ and $ respectively. Clearly, with this action this range has been penetrated, and traders will be reviewing price action to establish a new tradable range.

The overall market index S&P 500 is trading higher by 0.48% from its previous trading close, which means that Safeway stock is underperforming the overall market.