January 31 Chart of the Day - Unifi
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Per the company's website, UNIFI (UFI) is a vertically-integrated manufacturer and a pioneer in scaling the transformation of post-consumer bottles and waste textiles into sustainable products. Sounds interesting and since they report earnings today after the market close we wanted to review their chart from a price action technical analysis perspective.
With historical price data going back to the early 1990's we like the fact there's a lot of info to analyze.
On the monthly chart we can see significant periods of both bulls and bears.
Most recently bears making a series of lower highs and lower lows but can that change anytime soon?
Maybe, but probably just not yet.
Down on the weekly chart we can see that price has methodically been working its way back down towards a "gap." More times than not, gaps get filled but the biggest unknown is the "when."
Could today's earnings announcement be a catalyst for more selling to finally fill that gap and reach other potential supporting structure in the form of trend and support?
Regardless, price seemingly is getting "boxed in a wedge" and experience has taught us that when that happens price can often break out of the wedge aggressively in either direction.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
Take a look at the charts and let us know what you think.
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