WFM +14% Trade - Market Analysis for Nov 7th, 2014
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.
More Top Calls From Mike
Back on July 5, Mike Paulenoff alerted MPTrader members to the bullish potential in MRNAs chart.
With the stock trading at 154.68, he showed the charts projection towards resistance at the March 22 high of 188.33, writing: Just maybe, the 6 month base-accumulation period and pattern carved out by MRNA during 2022 after a wicked corrective-bear phase is starting to make its presence felt technically.
Back on July 17, with ARKK trading at 44.22, Mike Paulenoff commented:
ARKK (Cathie Wood ARK Innovation Fund) ... my attached 4 Hour Chart shows the price structure has carved out a May-July Rounded Bottom formation that is putting upward pressure on a key resistance zone from 46.70 to 48.12, and if hurdled, will trigger upside projections to 58-60...
Since then ARKK in fact climbed to a new 7-week recovery high at 49.
Back on Thursday, July 7, 2022, this is what Mike Paulenoff discussed with MPTrader members about the ARK Innovation ETF (ARKK):
Its Time to take a look at the technical setup in ARKK, putting aside the miserable narrative that surrounds ARK fund manager Cathie Woods performance from the February 2021 ATH at 159.70 to the May 2022 low at 35.10 (-78%).
Back on the afternoon of June 30, just ahead of the long July 4th holiday weekend, Mike Paulenoff posted to the MPTrader.com Coverage List the following chart-based commentary about a forthcoming directional price move in the SPY (SPDR SP 500 ETF Trust), which was trading at 379.38 at the time:
From the perspective of my Hourly SPY setup, todays low at 372.56 followed by the powerful rally to an intraday high at 380.
Back on June 17th, this is what we discussed about the TLT (20+ Year T-bond ETF)when it was trading at 112.53:
The TLT put in a big upside reversal day yesterday (6/16/22) from 107.80 to 111.72, closing RIGHT AT the High of 111.72, leaving behind a Bullish Engulfing Candle on my Daily Chart (not shown here). The last time TLT traded at 107.