We last reviewed UNFI back in January 2020 where we wrote "Avoid UNFI. The charts and indicators are not giving us any reason to go long. Further downside risk to the $4.50 area is possible." Prices sank to $5.05 last March as the pandemic hit the markets.
What do the charts look like now?
In the daily Japanese candlestick chart of UNFI, below, we can see a much different and much stronger chart than what we saw before the pandemic. Prices made a large sideways consolidation pattern around $16 before a January 2021 rally took hold. The shares have gapped higher this Wednesday as traders reacted to the company's EPS beat. It is early in the trading day but the candle pattern could be a bearish gravestone doji. Prices are above the rising 50-day and the rising 200-day moving average lines.
The On-Balance-Volume (OBV) line shows strength from early January to confirm and support the price gains. The Moving Average Convergence Divergence (MACD) oscillator crossed to the upside last week for a fresh outright buy signal.