Shopping For New Sunglasses…er, Food
- Posted by Greg Harmon
- on April 14th, 2014
Today you get a little insight into how focused the process is looking for stocks to trade on a technical basis. When I first noticed this stock, SunOpta, with its ticker $STKL, I assumed it must be a sunglasses company. But after only a 2 second search, what do you know, they make food. All the fundamental traders reading this please pause and go change your underwear now. What they do does not matter either way to me. A technical set up is just dependent on the price action. And this stock has been doing very well in a poor market the last couple of weeks. In fact it may be ready to break out higher. Take a look.
The stock has been in an uptrend since early February. The recent pullback to the 20 day SMA held and is consolidating under resistance at 11.85. And it ended up closing above it on Monday. The RSI is holding in bullish territory and over 60 with a MACD that is leveling after a small pullback. A break over that consolidation looks to complete a 3 Drives Pattern higher to about 14 (a 127% extension).
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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