Is United Natural Foods Trade Over?

Published on Thursday, 17 January 2013 04:33 Written by TradersHuddle Wire

New York, January 17th (TradersHuddle.com) - Shares of United Natural Foods, Inc. (NASDAQ:UNFI) ended the trading session lower by $1 or -1.9% 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 determined by calculated support defined at $51.40 and by the resistance level at $56.01, which should be used by traders planning their next move.

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