A large base has presented a bullish divergence as a harmonic deep crab completes above the reclaimed 50 SMA support.
Cal-Maine Foods Inc produces and sells shell eggs. Its main market is United States. The company's product portfolio contains nutritionally enhanced, cage-free, organic, and brown eggs. Cal-Maine Foods markets the shell eggs to a diverse group of customers, including grocery-store chains, club stores, and foodservice distributors. The company's brands are:...
NASDAQ:CALM broke out of the 4+ month ascending triangle chart pattern and close above resistance 4 days in a row before the news shock after the close yesterday. The stock gapped down 5+%, held around the opening print for around 2 hours and gravity took over from there. Remember, anything could happen when you enter the trade. Use stop losses and risk...
NASDAQ:CALM is forming a 4 months ascending triangle. Multiple tests of resistance line have taken place. A breakout from this consolidation will lift the price off the 200 moving average and set the tune for the next leg up. There is a considerable resistance around $51 and if cleared, price should reach chart pattern price target identified on the chart.
Sell now or wait till the price gets closer to the resistance line to trade at a lower risk or higher R/R ratio.
The trade described on the chart shows what we did. Just follow us !
Short @ 48.60 Stop Loss - 49.50 Profit - 47 and 2nd Target 46.25 Breakeven - When price move to 1:1 @ 47.80 Analysis based on Supply and Demand
Order Preview CALM Buy 1 Put Vertical Limit Debit Buy 1 Nov17 44/44.5 Put Vertical @ 0.45 Limit Debit DAY to Open 0.10 - 0.50 Sell Sell 1 CALM Nov-17 44 Put to Open 0.15 - 0.35 Buy Buy 1 CALM Nov-17 44.5 Put to Open 0.45 - 0.65
The company's efforts to restructure have not come across well so far, trailing its competitors. Cal-Maine has a long way to go, I believe, to fairly compete with larger players. I am pessimistic on the company's 3 month prospect and have a $35.00 PT. Stop set at $45.00 but is flexible up to $50.00. I believe the company will report lower guidance on Monday.
We can go long CALM above the Key Earnings level from the last earnings release. Keep stops under 51, and aim for a 5 daily ATR move. I like how it has closed the day above said level, I see considerable upside in this stock, and it has an excellent yield and solid fundamentals. Good luck if taking this trade. If interested in my professional trading signals, or...