Range trading with upside breakout potential.

2016년 10월 12일

Technically Speaking
A clear range has formed since September of 2015, roughly 26-35. Price is near the bottom of the range as this goes to publish(28.93). A simple strategy would be to buy 26, sell 35.
I would however like to point out that above 35/36, supply is very thin until the 58 handle.

Fundamentals
The most important variable I handicap for when analyzing a stock is the likelihood I will LOSE all my money, not volatility. Even though I am a "technical" trader, I do like to try to estimate the probability of a position going to zero. This usually happens via bankruptcy or the companies products become obsolete, think Blackberry.
You can view the companies fundamentals https://here-https://www.google.com/finance?q=NASDAQ%3AWFM&fstype=ii&ei=Aq7-V4nBIdrmeqKBuIgO

Bottom Line
To me, buying at the bottom of the range, stopping out on a weekly close below 28. You could either take profits at the top of the range, if it gets there, or hold. The biggest gains, I have found, come from holding trades. I would hold for a break above 35 and see what happens. You could always move your stop to b/e or lock in profits.

2017년 1월 7일

노트

Whole Foods is still trading a $28-35 range. I am still biased to the long side. A move under 26 would have me re-think my position.