Smithfield Foods Closing in to Support

Published on Friday, 13 August 2010 06:44 Written by TradersHuddle Staff

New York, August 13th (TradersHuddle.com) - Shares of Smithfield Foods, Inc. (NYSE:SFD) are trading very close to calculated support at $14.14 with current price action closing at just $14.41 places the stock price near levels where traders will start paying attention.

Smithfield Foods, Inc. (NYSE:SFD) engages in the production and marketing of fresh meat and packaged meat products. The company processes pork and produces hogs through its meat processing and hog production groups. Smithfield also produces and markets a range of branded food products such as frozen barbecues and chilies, peanuts, and pork products.

Smithfield Foods' current stock range is defined by current calculated support defined at $14.14 and by the resistance level at $15.44, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Smithfield Foods' price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $15.44 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.