Sanderson Farms released a better than expected third quarter of fiscal year 2013. Its net sales jumped 18.4% at 739 million dollars and the net income enhanced 36.5% at 67.9 million dollars. The uptrend should regain in coming trading session thanks to earnings release and a major technical support.

Analysts form the Thomson Reuters consensus have constantly and largely revised upward their earnings and sales estimation. EPS estimates state at USD 6.2 actually for 2013 while they were at only USD 2.35 one year ago.
Moreover, at current price, the company is trading 10.5 times its earnings for this year and thus has a significant potential.

Prices fell sharply to come back on a major support level at USD 64.6 which prevent a few times before a downward movement continuation. On this level, remobilization of buyer flows would allow an uptrend in the medium and long term.

Therefore, active investors will benefit from the recent technical rebound combined with unusual volumes to buy the stock on the current level price. The first target will be the USD 69 resistance and then, the USD 75. A stop loss will be fixed below the entry point to limit the risk.