$UNFICan $UNFI break out of consolidation? If earnings are a beat we could see a double bottom and a break of resistance market willing.
UNFI trade ideas
$UNFI is in a major strong support at 50-day MA$UNFI current price as of this writing closed at 15.44
Technically, $UNFI bounced on a 50-day moving average at 14.68 and another support at 15.15.
If it breaks down from its 50-day MA, another strong support at 13.62. A good entry is somewhere near the support at 13.62, 14.68 and 15.15 in case of a strong selling pressure.
With its good fundamentals - value, growth and momentum, its price movement may move sideways or bounce to its 14 to 17 price range while waiting for its catalyst.
Note: This is not a financial advice. The author is long on $UNFI.
UNFI LongFundamental Perspective:
United Natural Foods (UNFI) is a food wholesaler. They are currently best known as the supplier to WholeFoods and is one of the largest food distributors in America. From a fundamental perspective UNFI is on track to succeed. What's interesting is that this company were so excited to release their earnings, they put out a preliminary report and they absolutely hit it right outta the park: //ir.unfi.com/news/press-release-details/2020/United-Natural-Foods-Announces-Preliminary-Third-Quarter-Results-and-Provides-COVID-19-Business-Update/default.aspx
Technical Perspective:
As you can see, typical descending wedge following a parabolic movement aka bull flag. If we see another leg up to $22.50 by ER on June 10, we may potentially see a cup and handle breakout.
Good time to buyTechnical and Fundamental indicators show strong growth in the next few months. This company made a recent acquisition (Supervalu) and as per the company's strategy standpoint, it is a good move for expanding the supply chain and offer more product line to the customer.
Good buy for swing as well as value investors.
