A Bullish Reversal Pattern for United Natural Foods

unfi New York, January 3rd (TradersHuddle.com) - Shares of United Natural Foods, Inc. (NASDAQ:UNFI) ended the trading session higher by $0.49 or 0.91% from its previous close. United Natural's price action in the session formed what is considered to be a Hammer, where bears drove prices lower intraday. However, the strong finish indicates that bulls regained control, forming a trend reversal.

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 stock has been trading in a well defined range with calculated support at $53.00 and resistance at $56.01. This range can be used by traders to plan their next moves.

Traders wanting to establish a position in United Natural Foods or traders that are already holding the stock can use the hammer formation to their advantage, since the pattern signal a potential bullish trend reversal.

The Hammer is an important candlestick pattern, as it can mark bottoms and support levels. Further buying pressure, and preferably on expanding volume, is needed before acting, as heavy volume will serve to confirm the validity of the reversal.

In the case of United Natural Foods, traders who want to add to their positions or start a new position, need to watch for confirmation of the reversal. Below a Hammer illustration:



Related Articles

    Related Partner Headlines

      JIM CRAMER wants to work for YOU. JIM does the research -- YOU get email alerts each time he trades. JIM provides access to his actual portfolio -- YOU can use it to guide your portfolio strategy. Try Jim's Action Alerts PLUS for FREE!

      TradersHuddle Search

      Stock Search:


      Site Search:

      Loading

      Recent Trading Ideas

      Latest Partner Headlines

      Stock Market

      Loading
      Chart
      o Dow Jones 17,712.66 ▲34.43 (0.19%)
      o S&P 500 2,061.02 ▲4.87 (0.24%)
      o NASDAQ 4,891.22 ▲27.86 (0.57%)
      INDEXDJX:.DJI

      Dow Jones

      Company ID [INDEXDJX:.DJI] Last trade:17,712.66 Trade time:4:33PM EDT Value change:▲34.43 (0.19%)
      INDEXSP:.INX

      S&P 500

      Company ID [INDEXSP:.INX] Last trade:2,061.02 Trade time:4:33PM EDT Value change:▲4.87 (0.24%)
      INDEXNASDAQ:.IXIC

      NASDAQ

      Company ID [INDEXNASDAQ:.IXIC] Last trade:4,891.22 Trade time:5:16PM EDT Value change:▲27.86 (0.57%)
      Copyright © 2013 TradersHuddle.com. All Rights Reserved.