Supervalu, Inc., together with its subsidiaries, operates as a wholesale distributor to independent retail customers in the United States. It operates in three segments: Retail Food, Save-A-Lot, and Independent Business. The Retail Food segment operates retail stores that provide groceries and various additional products, including general merchandise, health and beauty care, and pharmacy under the Cub Foods, Farm Fresh, Hornbacher's, Shop n Save, and Shoppers Food & Pharmacy banners. The Save-A-Lot segment owns and operates 381 Save-A-Lot grocery stores and licenses an additional 950 stores to independent operators. The Independent Business segment provides wholesale distribution of products to independent retail customers comprising single and multiple grocery store independent operators, regional and national chains, mass merchants, and the military.
Please take a look at the 1-year chart of SVU (Supervalu, Inc.) below with my added notations:
After double bottoming at $2.25 back in November and December, SVU has been on a fantastic run. However, over the last 4 months the stock has been trading in a sideways range. The key to this range is the level of $7 that has been support several times recently and was resistance prior to that. So, $7 is the line in the sand for SVU.
The Tale of the Tape: SVU is approaching $7 again. A long trade could be made at $7 with a stop placed below that level. A break of $7 would be an opportunity to short the stock and should mean a fall back down to at least $6.
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