It’s Time To Go Organic

Whole Foods (WFM) has spent the last couple of months forming a pretty impressive bottoming pattern. Today the stock was up 2.02% and posted its first close above the 50-day simple moving average since March:

 

WFM_Daily_7.16.2015

WFM looks like an attractive long setup for the following reasons:

  • Clear bullish momentum divergence at the low earlier this month (RSI-14 made a higher low as price made a lower low on light volume)
  • Breakout above previous resistance near $41.50
  • First daily close above 50-day SMA in more than four months
  • 4 accumulation days and 0 distribution days in the last 8 trading sessions offers a strong signal of a character change in the stock
  • Open gap from May all the way up at $47.56 with a volume-by-price ‘vacuum’ between $43 and $47

Come check out the Trading Room at CHAT.CEO.CA to follow how we are trading WFM and many other stocks in real-time.