A Trendy Stock Charts member request came through for J&J Snack Foods Corporation (JJSF). J&J Snack Foods Corporation is a marketing client of TSC member modusmg. Modusmg had this to say about the company when making his request:

They have several national brands including ICEE, SUPERPRETZEL and Luigi’s Italian Ice. They’ve got many products in the grocers freezer. They sell SUPERPRETZEL in virtually every stadium in the country and movie theaters, etc. Every year they buy more brands to add to their portfolio.

Well, I know I’ve personally tried the 3 brands that modusmg listed above. Who doesn’t love a SUPERPRETZEL? Especially when you throw a nice thick slice of cheese on top of it and melt it on top for the last minute in the oven….I just bought a box yesterday for a movie night at my house tonight with my wife, my mom who is in from out of town and my aunt. We are going to watch the new Beauty and the Beast by the Walt Disney Company (DIS).

When I examine the brands under the JJSF corporate umbrella closer, I notice that I’ve tried more than 3. The Kim & Scott pretzels are awesome just like the SUPERPRETZELS, but in a slightly different way; they have cheese in the middle of the pretzel already therefore no additional cheese is necessary for the top of it. (FYI the cooking directions on the Kim & Scott’s pretzels are way off, the temperature is too low and the time is too short. This comes from multiple boxes of “experience”).

Let’s see if I can love the charts of J&J Snack Foods Corporation (JJSF) as much as I love their products.

J&J Snack Foods Corporation (JJSF)

I normally like to start with a 20 year monthly candlestick chart for new companies. However, I am going to first look at the P&F Chart for J&J Snack Foods Corporation (JJSF) and see what sort of price objectives that analysis calculates.

I’ve provided both sets of P&F Charts, one based on closing share prices only and a second based on highs and lows during intra-day trading. See if you can guess why I’ve provided both sets with this analysis….

Ok, so did you notice the difference between the[s2If !current_user_can(access_s2member_level1)]……

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I look at overhead resistance areas for JJSF’s share price, downside support areas and the probability of each happening based on other technical analysis methods.

If you are not a Trendy Stock Charts member, consider joining today! There are several different subscription plans available.[/s2If][s2If current_user_can(access_s2member_level1)] price objectives between the two charts? If not, take a look at each chart again and its price objective in the upper left-hand corner of each chart.

The closing P&F Chart has a bullish price objective of $168. The intra-day P&F Chart has a bearish price objective of $101. Talk about yin and yang.

Well, with those two price targets in mind, let’s review some candlestick stock charts.

JJSF – 10 Year Monthly Chart

Rather than starting off with a 20 year monthly candlestick chart for JJSF, I am going to start off with a 10 year monthly candlestick chart. Analyzing a longer-term view using monthly candlesticks should help me determine the overall trend for JJSF’s share price.

Here are the key take-aways from the above chart:

• At a minimum, JJSF’s share price appears poised for at least one more new all-time high before another longer consolidation period
• JJSF’s share price will see resistance immediately in the $143 – $147 price range and will need above average buying volume to break through this resistance area
  • If JJSF’s share price does break through the $143 – $147 resistance area on above average buying volume by the end of July, continue to hold onto the shares for a few more months – its share price could actually be heading towards the blue 161.8% Target Line from the blue Fibonacci Extension Tool at the $186.56 price level
• A potential trade opportunity exists to trim shares in the $143 – $147 price range and to then repurchase those shares back around the $120 area near the supporting trendline
  • The sale and repurchase trade would most likely take around 2-3 months to complete

 

JJSF – Fibonacci Extension Tools

This next chart is a 2 year weekly candlestick chart for JJSF. There are 2 different Fibonacci Extension Tools placed on the chart. The green Fibonacci Extension Tool is to calculate upside potential from the current share price. The red tool is to calculate downside risk from the current share price.

The MACD Histogram on this weekly candlestick chart is showing a slight increase in selling momentum. This is something to note. Monitor the MACD Histogram on this weekly chart. If selling momentum continues to increase by the end of the week, it may be worthwhile to wait for a re-test of the $130 price level.

Any break of the $130 price level on heavy selling volume is a longer-term bearish signal. If that occurs, the next level of support below that is around the $115 price level. That appears to be the preferred area to start scaling into a position with JJSF, especially if the MACD Histogram continues with increased selling momentum over a couple week extended period. It is key to make sure the selling momentum starts to slow before making that initial scale-in purchase, regardless of what price level it is.

J&J Snack Foods Corporation (JJSF) – Summary

The Point & figure charts provide for price targets that contrast like night and day. Maybe each will be applicable in due time.

The $168 – $186 price level is definitely a place where I would scale out of a long position in JJSF. I would then monitor its share price from the sidelines. But JJSF could see significant selling pressure right around the $147 area and never even see the $168 – $186 price level yet.

Any significant selling that breaks through the $130 price level will be cause for concern. Is the bearish P&F price objective of $101 then in play? I calculated initial weakness down to the $115 price area, but the red Fibonacci Extension Tool on the weekly candlestick chart does allow for a push down to the $103 price level if the $115 area fails to hold. That $103 price target seems to jive with the P&F charts based on the intra-day share prices. The intra-day P&F Chart had the bearish $101 price target.

Waiting for an entry seems best with JJSF. Monitor the $130 support area. Any bounce in strong buying volume could lead to a quick 10% gain. However a break below it on heavy selling volume and the move towards the $101 – $115 price levels are most likely in affect.

Trade wisely and good luck trading!

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