Clean, Simple, Healthy and Organic Eating and Trading

• Posted by Greg Harmon
• on July 19th, 2012

Healthy Food be it Organic or Natural has been the rage in shopping and chains like Whole Foods Markets, $WFM, Hain Celestial, $HAIN and the Fresh Market, $TFM have benefited as have their investors. But you might not know that the leading supplier of Natural and Organic products to these stores is United Natural Foods, $UNFI, and its stock has been on fire as well. For stocks like these it always feels like you are chasing it higher, without a good spot to get in. Well there is good news on the horizon for United Natural Foods. It may be ready to give you that entry.

United Natural Foods, $UNFI

I cleaned up the weekly chart above to carry only the 20 week Simple Moving Average (SMA), roughly equivalent to the 100 day SMA, and the Bollinger bands. What you can see is that over this multi-year rise the 20 week SMA has been an important level of support. With the break down this week it looks to come into play again shortly. If it holds that is you long entry. Also note that when it has not held then the price has continued lower to the bottom Bollinger band. This presents a potential short opportunity on a break of the 20 week SMA down to the lower band. You can then keep the short on until you see the Bollinger bands turn back higher where you can reverse the trade and buy the stock. Very simple.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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