SMPL Stock Price Surged Over 11%, Are Bulls Overpowering Bears?

• The Simply Good Foods stock price jumped by over 11% in the previous two trading sessions.
• Morgan Stanley has upgraded the Rating from EqualWeight to Overweight on the SMPL stock.
• The Simply Good Foods stock has been moving in a horizontal range for more than two years.

In the last two trading sessions, The Simply Good Foods stock price has shown an escalation of over 11%, which is the highest surge in one year. This rally occurred after the company reported its Quarter 3 results on 24 October 2023. It has reported an increase in sales and margin which helped the company generate more profit than the previous year Q3.

Since being listed, the Simply Good Foods stock has been in an uptrend and it was last till April 2022. After that, the stock showed a correction, which later turned into an accumulation phase for the stock.  It halted the decline in September 2022 and has been moving flat since then. 

The Simply Good Foods stock has been rated by the rating firm Morgan Stanley in September. It has raised the target price on the stock from $37 to $40 and upgraded the rating from Equal-weight to Overweight. This can help the investor to boost their confidence to go long on the stock. The recent surge in price is looking strong and the stock may achieve the target price very soon.

An Overview of the SMPL Stock Chart

The SMPL stock price has formed a massive bullish candle in the past 2 trading sessions. These 2 candles have engulfed every single candle of the past 2 months on the daily chart. It shows that the buyers have defeated the sellers who are present at different levels. The stock price has formed a double-bottom pattern on the daily chart, which is considered bullish.

The SMPL stock price has closed the previous trading session near the previous resistance level of $36.52. The price is looking super bullish and it can try to breach this level. The other resistance level is present near the level of $40.18. Considering the support level, it is present at the level of $31.78 and $29.17.

An Outlook of the EMAs and Relative Strength Index

The SMPL stock price has successfully crossed and closed above both the 50-day and 200-day Exponential Moving averages. However, the EMA has been curving flat for a long time which confirms the consolidation. The Relative Strength Index is currently placed well above the 50 level and by this way, it can soon reach the overbought trajectory. 

Conclusion

The SMPL stock price has shown great strength in the last 2 days and that’s a positive sign for the stock. After a quarterly report, the stock price’s near future is looking promising. Apart from this, several rating firms have raised the target price of the stock which can boost the price. 

Technical Level

• Resistance – $36.52 and $40.18
• Support – $31.78 and $29.17

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.