SAFM - Sanderson Farms Fri 13'th Jan 2017
Stock analysis for Fri 13'th Jan 2017 (Updated daily)
Buy candidate since 2017-01-13
Sanderson Farms Stock Analysis
Sanderson Farms gained 1.18% in the last trading day rising from, USD 93.38 to USD 94.48. The price has risen in 6 of the last 10 days days and is up by 0.29% over the past 2 weeks. Volume fell in the last day by -180 649 shares and ,in total, 236 340 shares bought and sold for approximately USD 22.33 million. You should note that falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.
Sanderson Farms lays in the middle of a wide and weak rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 8.4% during the next 3 months and, with 90% probability will hold a price between USD 90.35 and USD 106.15 at the end of this period.
Only positive signals in the chart today. Sanderson Farms holds a sales signal from the short-term moving average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock. On further gains, the stock will meet resistance from the short-term moving average at approximately USD 95.06. On a fall, the stock will find some support from the long-term average at approximately USD 89.98. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sales signal. A buy signal was issued from a pivot bottom point on Wednesday December 28, 2016, which indicates further gains until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and may be an early warning. The stock should be watched closely.
Relative Strength Index (RSI)
RSI14 is 53 and the stock is currently not being overbought or oversold
Support & Resistance
On the downside the stock finds support just below today's level from accumulated volume at USD 88.75 and USD 81.04 On the upside the stock meets some resistance just above today's level from accumulated volume at USD 95.22, USD 96.32 and USD 96.70.
There is natural risk involved when a stock is testing a support level, as if this is broken the stock may fall to the next support level. In this case Sanderson Farms finds support just below today's level at 88.75. If this is broken the next support from accumulated volume will be at 81.04 and 78.98. The stock is about to test the resistance from accumulated volume at USD 95.22 and this may cause the stock to take a minor break or get into a more sideways move for a few days.
This stock is usually traded at good volume, and with minor daily changes the risk is considered to be low. During the last day the stock moved USD 1.08 between high and low, and this equals 1.15%. For the last week, the stock has had a daily average volatility of 2.12%.
Our recommended stoploss: USD 90.14 (-4.59%) ( criteria: risk and position in trend)
Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for this stock to perform well in the short-term. We have upgraded our recommendation for this stock since last evaluation from a Sell Candidate to a Buy Candidate.