Want some specifics on a big dragonfly doji? Here’s your trade on United Natural Foods (UNFI) (September 21, 2018)

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United Natural Foods ( NASDAQ: UNFI ); this is why I want to look at this today: This stock traded well below three standard deviations (that’s Sigma Bands as I call them), three standard deviation Bollinger Bands, where stocks are really not supposed to do that; some would say it’s a law.

What happened was, the company actually reported earnings that were okay; it’s just that obviously a lot less than the market was anticipating so the thing sold off in a big way; it traded almost down to $28.00, you can see how this thing traded. So it was done going down by 10:00 and then it started rallying the rest of the day.

This is where all of the selling really took place, right here. And from about 28.50 on it was all buying pretty much right into the close. If we look at the daily chart you can see there is a lot of buying here. Everybody that is in this stock now is pretty much profitable, not everybody obviously. But the point is, I look at this and I see a lot of weak hands have already been washed away, that’s down here. This stock could give you more upside on Monday.

This is how I would trade this stock: Looking at 31.37 is where it opened. It traded up like 8 cents above that to 31.45 so really that is your top right there. With this big, massive washout, a pukefest followed by a puke and rally, I would be looking to buy this stock at about, literally, 31.46. If the stock comes back up to $33.00, that’s your exit; that’s the way I would trade that stock. Buy it at like 31.46, 31.47, something like that. I wouldn’t give the stock room down to $30.00; you could but you are making essentially what is a day trade here. I am giving you specifics here, 31.47 is the buy, your stop is 31.85, look to get out at 32.86. How’s that? That’s your trade on United Natural ( NASDAQ: UNFI ); we’ll see how it plays out.