Whole Foods (WFMI) Showing Bullish Pattern
10/06/2010 12:01 am EST
Shares of Whole Foods Market, Inc. (WFMI) have been trading mostly sideways since reaching 2010 highs at $42.50 back in May. But they are in a bullish pattern at this time.
Since May, WFMI has been making lower highs in its rallies and higher lows in its declines. If you draw a line through the rally closing highs and the decline closing lows, you get a pennant pattern.
Typically, when a stock breaks out of such a pattern, it continues in the direction of the break.
Also, stocks usually break in the direction of the previous major trend, and in this case, that trend was up.
Currently, the upper declining trend resistance line is at about $37.00 per share. The rising trend support line is at about $35 a share.
By Frank Kollar of FibTimer.com