The J.M. Smucker Company (NYSE:SJM) is trading sideways on Thursday. The shares have gained more than 12% in two days after a strong earnings report. But the move higher may be over. The shares are overbought and at resistance. This is why the food and beverage manufacturer is our Stock of the Day.
‘Sell at former tops' is an old Wall Street saying. It's not fiction. It refers to a common market dynamic.
Stocks tend to hit resistance when they reach levels that had previously been tops or peaks. As you can see on the chart, J.M. Smucker hit resistance yesterday around the $117 level.
Smucker’s Buyer's Remorse?
There are people who bought shares around $117 who regretted their decision to do so when the price fell after. A number of them decided to hold onto their losing position.
