Here is your trading plan for Whole Foods Market (WFM) (December 22, 2015)
WFM
We’re looking at Whole Foods ( NASDAQ:WFM ) today. This thing has been in the steep downtrend, I’ll say it, from hell, it’s just really taking it in the shorts. The stock based here around 29.00 and I want to point you to this breakout. This was a key breakout, high volume breakout above the 50-day moving average. It’s kind of tough to buy a stock that ramped up almost 9 percent in one day, and that was the right move to wait. The stock trades lower, volume is just about average really, and then over the last couple days we get a move higher. Finally today there’s a breakout above this level. So I’m looking at this, this day today, as a pretty good indication that this is in fact a bottom.
I have no idea how high Whole Foods ( NASDAQ:WFM ) is going to go, but I just know this: as long as the stock stays above $34.00 I think this is a stock that you can own. And by the way, even if it pulls back below $34.00, you don’t want to get shaken out just on any little oscillation in a fairly low volume market. So my suggestion would be, if you like this stock, and there’s others too; if you like this stock just take a small position here. If the stock pulls back just a little bit, maybe take a little bit more, but really take a look at the big picture, the real big picture here and you’ll see that this is a pretty solid bottom here. The stock’s come down quite a bit and so it’s probably just about the time that you can start looking at going long on Whole Foods ( NASDAQ:WFM ).
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