Supervalu Shares Rose 49 Cents

Supervalu Shares Rose 49 Cents

A Minnesota-based grocery company is making a power play in the Chicago area, stepping into the void being left by the bankrupt Central Grocers, a nearly century-old grocery cooperative that’s closed up shop. Supervalu Holdings has entered into an agreement to buy Central Grocers’ massive distribution center in Joliet for $61 million.

Supervalu reported fiscal first-quarter net sales of $4 billion, up 6.3 percent and marginally higher than average analyst expectations, according to Thomson Reuters data. The company’s wholesale net sales rose 12.4 percent in the quarter, an increase that Jain said was better than he expected.

Supervalu shares rose 49 cents to close at $3.74, their largest one-day percentage gain since 2013. The shares were still down 21 percent year to date, however, even with Tuesday’s gain.

Technical Analysis

Overall, the bias in prices is: Upwards.

Short term: Prices are stalling.

Intermediate term: Prices are trending.

The projected upper bound is: 3.97.

The projected lower bound is: 3.13.

The projected closing price is: 3.55.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 19 white candles and 28 black candles for a net of 9 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 75.9124. This is not an overbought or oversold reading. The last signal was a sell 6 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 56.43. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 19 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 232.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 17 period(s) ago.

Rex Takasugi – TD Profile

SUPERVALU INC closed down -0.180 at 3.560. Volume was 86% above average (neutral) and Bollinger Bands were 28% narrower than normal.

Open   High   Low    Close   Volume
3.700  3.720  3.530  3.560  1,958,235

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period   50-period    200-period
Close:                       3.36            3.54               4.06
Volatility:                95                77                  60
Volume:                  1,248,701    1,099,054   968,467

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

SUPERVALU INC is currently 12.3% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of SVU.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on SVU.N and have had this outlook for the last 1 periods.

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Ivy Heffernan

Ivy Heffernan, student of Economics at Buckingham University. Junior Analyst at HeffX and experienced marketing director.

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