Alliance Select Foods International, or FOOD, is poising for a reversal from its bearish trend, as it tests the 1.50 key resistance level, which it has been trying to breach since the middle of October. Since December 2009, FOOD has been trending lower, coming from the 2.16 level, and this time, FOOD has an opportunity to break free from this bearish bias.
Looking at the price chart, FOOD has somewhat managed to squeak past this bearish trend line, to encounter the 1.50 key resistance line. Now, if price manage to break out from this level, FOOD will encounter 1.60 as its next resistance, and 1.70 as the next.
Buy on breakout with convincing volume, and don’t preempt any breakouts, as FOOD can still respect the 1.50 resistance level, and consolidate further.
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