Naturally, unified on a view to buy United Natural Foods

• Posted by Greg Harmon
• on September 8th, 2015

Healthy food, be it Organic or Natural has been mainstream in shopping and chains like Whole Foods Markets, $WFM, and the Fresh Market, $TFM for years. But you might not know that the leading supplier of Natural and Organic products to these stores is United Natural Foods, $UNFI. It is time to get to know them.

United Natural Foods stock price pulled back from a high at the end of February, like the grocers it serves. With a gap down on strong volume after reporting earnings in July, it started to settle after about a week. Since mid-August it has drifted higher in that consolidation.

Now the Bollinger Bands® are turning up, pointing to further upside. The momentum indicators RSI and MACD are also supportive of more upside and bullish. The stock price is back to where it started the last gasp lower at 50.50 and over the 20 day SMA. Above that the falling 50 day SMA looms at about 52 and then a gap to fill up to 62.30. Support lower stands at 47 and 44.50. A move into the gap could trigger some short covering and a possible squeeze with over 8% short interest in the stock.

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