Strong Buy Candidate
Tue 23'rd May 2017
Sanderson Farms Stock Analysis
Technical stock analysis for Tue 23'rd May 2017
Buy candidate since 2017-05-22 Gain 0.35%
Sanderson Farms lies in the middle of a narrow and strong 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 30.1% during the next 3 months and, with 90% probability hold a price between USD 149.81 and USD 158.22 at the end of this period.
Only positive signals in the chart today. Sanderson Farms holds buy signals from both short- and long-term moving averages. In addition, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down there will be some support from the lines at USD 115.29 and USD 111.93. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday May 11, 2017, which indicates further gains until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal.
Relative Strength Index (RSI)
RSI14 is 58 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 102.76 and USD 95.04. There is no resistance from accumulated volume above today's level and given the right condition the stock may perform very well during the next couple of days.
There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Sanderson Farms finds support just below today's level at 102.76. If this is broken, then the next support from accumulated volume will be at 95.04 and 93.91.
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 2.79 (2.44%) between high and low. For the last week, the stock has had a daily average volatility of 3.23%.
Our recommended stoploss: USD 111.23 (-4.90%) (This stock has low daily movements and this gives low risk. There is a buy signal from pivot bottom found 8 days ago.)
Sanderson Farms holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our recommendation for this stock since last evaluation from a Hold/Accumulate to a Strong Buy Candidate.