PFGC - Performance Food Group $50.63 +1.13

Sunday's Comment:

PFGC, a major supplier of food products to restaurants, hotels, schools and hospitals could be on the verge of another price breakout. For most of this year, PFGC has seen quick spikes in its price following a period of consolidation around its 50-DMA. Currently, this moving average is slightly below $48.00 and PFGC has been consolidating right around this price for two weeks. By closing right on its high for the week on Friday, PFGC may be ready for another spike up this week. New positions could be considered if PFGC opens higher on Monday. If you see a gap up, you may want to wait for a little pullback in the first few hours of trading before jumping on board. In addition to PFGC's strong chart, we believe that the stock is a split candidate, now that the stock has climbed back above $45.00. A move higher this week would likely be confirmed by a MACD that turns positive. Money Flow is also quite strong. A quick advance would have plenty of upside potential before the RSI issues an overbought signal.

Monday's Update:

Since reporting outstanding quarterly results in early February, Performance's stock has run up and then run back down. In fact, over the past three months, the stock has put in three different bottoms from which it has been able to rally. We expect PFGC to make another run from its most recent bottom at $46.50. With that said, at its current price of $50.63, PFGC appears to have support at its 40-dma of $48.50. As for resistance, there doesn't appear to be any until the upper Bollinger Band located $53.69. Once this level is breached, however, a challenge of the all-time high of $56.75 could be in order thanks to a MACD that turned positive today and strong Money Flow. Traders considering a position in PFGC should look for strong volume, 50,000 shares or more traded by noon EST, on a move through yesterday's intra-day high of $51.00 before placing their trades.

Picked on March 25th @ $49.50 Change since picked +1.13 Stop Loss @ $46.00

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