Yesterday at a glance: in yesterday's bearish session, the controlled environment agriculture pioneer shed around 3.98% in quick fashion, found support around the 81.05 cents level and finally closed at 81.5 cents. In contrast, the day's events followed Monday's session in which the stock closed at 84.88 cents.
Amid the market gloom, United States Building Permits (Mar) came out at 1.41 million, while a consensus of analysts was expecting 1.45 million. United States API Weekly Crude Oil Stock released yesterday at 20:30 UTC with a figure of -2.67 million, while the previous figure was 377,000. Data from United States concerning Housing Starts was released yesterday at 12:30 UTC. Newly published figures emphasized continued decline from last month's figure of 7.3% to -0.8% this month.
Village Farms International, Inc. made an initial break below its 21 day Simple Moving Average at 82.6205 cents, a possible indication of a forthcoming negative trend. A "bearish engulfing" pattern — a scenario when a larger red candle engulfs a smaller green candle, at the top of a prevailing uptrend. Typically this is a signal of lower prices in the near term. Village Farms's upper Bollinger Band® is at 87.0313 cents which indicates a further downward move may follow. On the other hand, note that Village Farms could begin to recover as it approaches significant support, now 1 cents away from 80.0333 cents. Dipping below could be an indication that further losses are ahead.
Following today's unexpected losses, extensive multifactorial technical analysis forecasts Village Farms to buck against its prevailing uptrend and begin to dip lower in the short term. With all probabilities considered, the the controlled environment agriculture pioneer is expected to attract significant bearish sentiment in the coming days.
Village Farms was not the only decliner in the consumer staples sector; Diageo stumbles 0.81% yesterday to close at $185.52. Anheuser-Busch lost 0.86% yesterday and closed at $64.36.
On the other hand, positive performances could be seen by looking at other consumer staples stocks as Philip Morris International gained 1.39%, as it traded at $101.33.
With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as today at 14:30 UTC data for United States Crude Oil Inventories will be released, with an expected decline to -1 million from the preceding figure of 597,000.
Furthermore, United States Philadelphia Fed Manufacturing Index (Apr) will be released tomorrow at 12:30 UTC. United States Existing Home Sales (Mar) scheduled to come out tomorrow at 14:00 UTC.
On a negative trend for around 2 months. The consumer packaged goods provider reached a significant high of $4.52 around a year ago but has lost 81.22% since then.