United Natural Foods Bullish Signs
Published on Friday, 19 April 2013 05:51 Written by TradersHuddle Wire
New York, April 19th (TradersHuddle.com) - Shares of United Natural Foods, Inc. (NASDAQ:UNFI) ended the trading session lower by $0.53 or -1.07% from its previous close. United Natural's price action formed what is considered to be a bullish engulfing candle that could very well signal a continuation of trend or reversal of the ongoing weakness.
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 recent stock range was formed by a trough where calculated support was defined at $52.72 and by a peak that established the resistance level at $61.26. This range could be used by traders managing their positions.
Traders wanting to establish a position in United Natural Foods or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk, as it shows where the bears were able to push the stock down, before the bulls step in with a bid.
The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short-term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration: