WFM posted underwhelming quarterly earnings results and the stock is down significantly in early action today. More importantly, however, is the longer-term price support that's being tested. WFM has not had an open or a close beneath 35.90 since early 2012 although WFM has tested this area several times over the past 15 months. Technically, the first thing WFM needs to do is hold onto price support. From there, the stock needs to break its relative downtrend line where it's been underperforming its peers for nearly two years. WFM announced that it will be testing newer lower-priced stores, beginning in California within a year. The question becomes will traders buy into this new company strategy. Loss of 35.90 support would obviously show that investors remain skeptical. Here's the chart:
Happy trading!
Tom
