Monday, 9 June 2014

WFM - a rally to gap fill ?

Whilst the main market has clawed strongly higher in the past few weeks, Whole Foods Market (WFM) has been trundling within a narrow range. Last Thursday, that concluded with a clear break, there looks to be reasonable upside to the gap zone of $48/50, which is a powerful 20% higher.

WFM, 60min

WFM, daily


*I have an interest in going LONG the stock, but would prefer an entry in zone'1 early Tuesday. Considering today's price action, the low $40s look...doubtful.

Recent price action, seen on the bigger daily shows WFM stabilising after the market was upset by earnings. There is a very obvious gap zone, along with the big $50 psy' level to hit, on any bounce in the near term.

WFM's margins are a little thin, but then, it is the retail sector, where margins are typical best.

see key stats @ yahoo Finance

*Next earnings: late July, market will no doubt be seeking some improvement in Q2, but more importantly, the outlook for the rest of the 2014.