WFM +14% Trade
by Mike Paulenoff
November 6, 2014 • 11:00 PM EST
On October 27, we noted that Whole Foods Market, Inc. (WFM) was "poised for upside continuation within its May-Oct bottoming pattern," and we added it to our model portfolio at 38.50.
The immediate target was a test of 40.00/10 initial resistance plateau, which the stock reached a week later, this past Monday, November 3. We'd noted that a move through this level "should trigger a powerful upside follow-through that attracts new buying as the stock rounds out its base into a potent medium-term advance that projects to 50."
On Wednesday after the close, the company reported better-than-expected earnings, leading to an explosive upside breakout from its near 5-month base formation.
We exited the trade on Thursday at 43.82 for a 14% gain, looking to re-enter into weakness before the next move higher into our initial target zone of 46.10/50, which the stock surpassed on Friday.
Stay tuned for continuing chart analysis on WFM in our Trading Room.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
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