Jelly + Jam + Preserves = Success at Smuckers

• Posted by Greg Harmon
• on October 13th, 2015

The J.M. Smucker Company, $SJM, probably started as a nice local fruit farm just down the road a ways in Orrville Ohio. It is still run by the family 118 years after it was founded by Jerome Monroe Smucker in 1897. The company has spread its wings a bit in that time but fruit spreads have always been a big part.

That simple recipe has made for a booming stock price, up over 740% in the last 15 years. The last 4 months has been a bit of a pause in that record. Perhaps a buying opportunity for the long sighted investor. But there also appears to be an opportunity right now for the trader.

The chart above shows Smucker’s stock price this year. Technically it fell out of a bearish rising wedge in June, reaching the target price move quickly. Then it drifted sideways through July and August, rising after the market plunge in August. It has bounced around under resistance at 118 since then. Until Monday. It tested above resistance Monday and pushed higher Tuesday.

A close above 118 is a short term buy trigger and a signal to look for new all-time highs soon. The momentum, indicators support the upside continuing as does the broadening Bollinger Bands®. It might be time to spread some Smuckers stock in your portfolio.

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