Skip to main content

Find Out: Key Level of Support Was Just Broken in Domtar (UFS)

Shares of Domtar (UFS) have been trading in a sideways trading range. This morning the stock broke through its support level. Learn how to profit from this.

Shares of Domtar Corp. (UFS) have been trading in a sideways trading range.  It looks like today is the day the range will be broken.

UFS makes and sells a variety of fiber-based products in two segments: pulp and paper and personal care. The company should benefit from strong demand in softwood and fluff pulp and its personal care unit is poised to benefit from productivity gains and new customers.

Take a look at the 1-year chart of UFS below with added notations:

 

Chart of UFS provided by TradingView

After jumping more than 20 percent on earnings, UFS moved into a small, sideways trading range. While in the range, the stock has formed a resistance area at $30 (red), and a level of support at $28 (green).

On the open this morning, shares of UFS broke below the $28 support level.  A possible trade could be to short UFS under $28 with the expectation of a breakdown.

Want to Discover More Great Trades?

I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.

That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!

5 WINNING Stock Chart Patterns

Have a good trading day!

Good luck!

Christian Tharp, CMT

@cmtstockcoach


UFS shares were trading at $27.77 per share on Tuesday morning, down $0.86 (-3.00%). Year-to-date, UFS has declined -25.82%, versus a 5.16% rise in the benchmark S&P 500 index during the same period.



About the Author: Christian Tharp, CMT

Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock.

More...

The post Find Out: Key Level of Support Was Just Broken in Domtar (UFS) appeared first on StockNews.com
Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.