Village Farms loses 2.75% in after hours trading after closing at 72 cents today

A quick look at today: in today's bearish session, the controlled environment agriculture pioneer shed around 4% in quick fashion, found support around the 70.64 cents level and finally closed at 72 cents. In contrast, the day's events followed yesterday's session in which the stock closed at 75 cents.

United States Producer Price Index released earlier showed a marked improvement to 0.2% from the preceding data of -0.4%, but fell short of the 0.3% figure forecast by a consensus of market analysts. Data from United States concerning Initial Jobless Claims was released today at 12:30 UTC. Newly published figures emphasized continued decline from last month's figure of 242,000 to 264,000 this month.

This down-slide takes place while positive United States macroeconomics indicators data was published earlier – highly important Crude Oil Inventories data from United States beat analyst expectations of -917,000 with a reading of 2.95 million.

Chart analysis indicates Village Farms International, Inc. could begin to recover as it approaches significant support, now 1 cents away from 71.1 cents. Dipping below could be an indication that further losses are ahead. With regards to technical trend indicators, chart analysis show that Village Farms made an initial break below its 10 day Simple Moving Average at 74.941 cents, a possible indication of a forthcoming negative trend. Price action pushed below a known Fibonacci support level at 74.4543 cents by around 2.4543 cents with prices hammering out a 70.64 cents – 75.07 cents range by session close. According to asset volatility analysis, Village Farms's lower Bollinger Band® is at 67.6884 cents, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.

All in all, the technical analysis suggests Village Farms has no clear-cut direction.

On the other hand, positive performances could be seen by looking at other consumer staples stocks as Coca-Cola was up 0.57%. Mondelez International gained 0.6%, as it traded at $78.36. PepsiCo was up 0.55%.

Trending downwards for around 3 months. Village Farms has shed $2.61 points and is languishing 77.68% lower over the past year, leaving its yearly highs around $3.36 in the rear-view mirror.