Biggest Gainer at the Opening Bell: Sysco

Can Sysco hold its rising wedge pattern?

Stocks (2)

On Tuesday morning, Sysco (SYY), the largest food distribution company in the U.S. gapped up about 3% before continuing to advance. 

Looking at a daily chart, Sysco's stock price is holding a rising wedge pattern that began to form in mid-March. Price was on the verge of breaking below the lower trend line until today's gap up. Price appears to be using the 50-day moving average as support, a slightly bearish signal considering that price was previously using the 20-day moving average as support. Price breaking to the upside of the short-term sideways channel that began on June 11th is bullish and the most recent signal. Price is expected to continue advancing inside of the rising wedge pattern to retest the $65.00 resistance. If price can break above $65.00, we will likely see price push onward to $74.00. If price falls back below the lower trend line then we can expect choppy price action as it re-enters the sideways channel. Price will then mostly likely hold below the lower trend line before breaking the 50-day moving average and falling back to $51.00 support and possibly to the $44.00 support.       



Source: GAIN Capital, TradingView

More from Equities

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.