A quick look at Friday: after closing Thursday at $2, Village Farms closed at $2.22 Friday after climbing to $2.27 and dropping back down.
Village Farms International, Inc. made an initial breakout above its 50 day Simple Moving Average at $2.14, a potential indicator of a newly emerging bullish phase. Price action overcame a known Fibonacci resistance level at $2.16 by around 5.642 cents with prices hammering out a $2 – $2.27 session range. On the other hand, note that Bollinger Band® analysis indicates that current price action is approaching the upper band at $2.27, thereby suggesting that Village Farms is becoming overvalued. Village Farms could be slowing down soon; it is getting close to the resistance line and is now at $2.32, only 10 cents away. Crossing the resistance line could, however, suggest that further gains are ahead.
According to technical analysis, it looks as if Village Farms likely to continue pointing upward in the short term.
This rally in Village Farms's share price coincided with other consumer staples stocks as Anheuser-Busch added 2.98% to its value, and traded at $55.36. Philip Morris International was up 1.31%.
Village Farms went up Friday, yet these consumer staples stocks did not follow — PepsiCo lost 2% Friday and closed at $178.05.
Friday's gains have given market bulls further impetus to expect strong macro data going forward, such as United States Producer Price Index is projected to outperform its last figure with 0.5%. It previously stood at 0.4%; data will be released tomorrow at 13:30 UTC.
Village Farms is now trading 10.22% above the significant low ($1.81) it slumped to 5 days ago.