Bull & Bear: Chiquita Brands International

Shares of Chiquita Brands International CQB are trading higher on the session by 0.39%, at $13.98. With shares hovering around the $14.00 level, you have to wonder where they could be heading next… Bulls: bulls will note that the $14.00 level is a major resistance come support level. Chiquita Brands International has managed to rocket off of this level several times in the past six months. Bulls will also note that the stock is trading in heavily oversold territory. This, coupled with the fact that shares are trading so far below the 50-day moving average, should provide some technical support to shares as well. Bulls will also note that call volume has jumped in the past few days. A bullish trader could buy the August $14.00 call for $1.20 and sell the August $16/12 strangle for a net credit of $0.90. Bears: bears will note that the 20-day and 50-day moving averages are downward-sloping; the 200-day is also in danger of tipping lower. This shows that Chiquita Brands International is no longer under long-term accumulation. Bears will also note that, if Chiquita Brands International were to break the $14.00 level, the next major support level is not until ~$13.00, then $12.50. A bearish trader could buy the August $14/12 put spread for a net debit of $0.85. Chiquita Brands International, Inc., along with its subsidiaries, is a marketer and distributor of bananas and other fresh produce, sold under the Chiquita and other names, and of packaged salads sold under the Fresh Express and other names primarily in the United States. The company produces on its own farms approximately 30% of the bananas it markets, and purchases the remainder of the bananas and the lettuce and other fresh produce from third-party suppliers worldwide.