Shares of S.J. Smucker ( SJM) are trading up Tuesday on the heels of an earnings and revenue beat. Let's check out the charts and indicators of this company with many iconic brands.
In the daily bar chart of SJM, below, we can see that the shares plunged sharply in May but managed to stabilize in recent weeks in the $122-$120 area. Prices are well below the declining 50-day and the weak 200-day moving averages.
The On-Balance-Volume (OBV) line moved down quickly in May but may be improving a bit in recent days. The Moving Average Convergence Divergence (MACD) oscillator has narrowed in recent days and is ready for an upside crossover and cover shorts buy signal.
In the weekly Japanese candlestick chart of SJM, below, we can see that the stock is still in a longer-term uptrend as the pattern of higher lows has been maintained since early 2020. The slope of the 40-week moving average line has begun to turn lower but we can also see some lower shadows in the $125-$120 area.
The weekly OBV line has been strong the past three years with steady movement in the past two months even as prices slumped lower. The weekly MACD oscillator is pointed down and poised to cross below the zero line for an outright sell signal.
In this daily Point and Figure chart of SJM, below, we can see a potential upside price target in the $146 area.
In this weekly Point and Figure chart of SJM, below, we can see a potential downside price target in the $95 area.
Bottom-line strategy: Shares of SJM look like they can recover further to the mid-$130s but a rally to the $146 area based on the Point and Figure chart seems like a stretch. Only nimble traders should apply.
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After another GME earnings blunder and change of players, I see the stock as this: pure speculation with a strong balance sheet. But I believe the company can find a way to the next level -- though it could get zapped before getting there.
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