SJM - The J. M. Smucker Co

SJM is a $7.1 billion consumer goods company that engages in the manufacture and marketing of branded food products in the United States, Europe and Canada.

SJM was downgraded, resulting in a 2.8% drop on volume that was 50% heavier than normal. That's the bad news. The good news is that SJM has significant gap support from $59.40 (top of gap support) to $57.75 (bottom of gap support).

That could come into play on Tuesday. Conservative traders may want to see if SJM falls back into this gap support zone and reverses before considering a position on the long side.

We would expect this area to hold so dual entry at the top and bottom of the gap support zone would make sense with a tight stop near the $57.00 level to protect against much downside. Ultimately, recovery back to the $63.50 level would be our target.