Approaching Resistance - United Natural Foods

Published on Tuesday, 03 January 2012 19:44 Written by Danny Miller

New York, January 3rd (TradersHuddle.com) - Shares of United Natural Foods, Inc. (NASDAQ:UNFI) are trading very close to calculated resistance at $40.44 with the current price action closing at just $40.18 placing the stock near levels that make it difficult to buy.

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 defined by current calculated support defined at $35.85 and by the resistance level at $40.44, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for United Natural Foods, as the stock is well above support, however, as the stock pulls back towards $35.85 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $40.44 then traders will get an opportunity to enter United Natural Foods stock by establishing a position as the stock moves to a higher range.