Don't Ignore This Chart!

Whole Foods Market (WFM) Poor Results Test Support

 | 

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

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus