Sanderson Farms shows relatively strong fundamentals and is coming back to attractive price.

After several weeks of a downward fluctuations below the USD 70.65/78.2 mid-term range, the stock is coming back close to the lower limit of the range. Moving averages are flat and technical indicators illustrate the oversold situation. The USD 70.65 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the USD 75.9 mid-term resistance and then the long-term target price will be the USD 78.2.

Therefore, the proximity of the USD 70.65 support is an opportunity to open a long position in Sanderson Farms. The first goal is a return in the USD 75.86 resistance area, that is a potential of around 7%. In fact, the security has to cross this area in order to re-establish a bullish trend. A stop-loss order can be placed under the support currently tested.