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Despite beating analysts' earnings numbers for their fiscal fourth quarter,
J.M. Smucker (
SJM) is getting sold off today, thanks in large part to a revenue miss due to declining prices for the foods that Smucker sells. That revenue miss is enough to shove SJM down almost 5% over the course of today's trading, breaking through an important support level at $102.
Smucker had been consolidating sideways in a rectangle pattern with resistance at $104 and support at $102, but today's break of the lower boundary of the pattern looks bearish. Luckily for SJM investors, shares appear to have already reached their price objective for the breakdown, but I'd be skeptical of this stock's trading for the next few sessions. There's been a lot of profit-taking today, and there's no sign of just how many weak hands are still in this stock. I'd recommend waiting for a more meaningful support level to get established before jumping in.
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