Turn Around For Whole Foods (NASDAQ: WFMI)? Asks Market Timer Frank Kollar
February 26, 2006 (By Frank Kollar)
Shares of Whole Foods Market Inc (NASDAQ: WFMI) have been in a wicked decline since touching $80.00 back in December 2005. Whole Foods is under increased competitive pressure from retailers such as Wal-Mart (NYSE: WMT), and Kroger (NYSE: KR) that are also offering organic food items.
Whole Foods’ plan to acquire Wild Oats Markets (NASDAQ: OATS) for about $565 million caused a huge jump in share price last week. Is a bottom finally in for this widely traded stock?
Obviously traders liked this deal, but the company remains under pressure from increased competition. Traders taking long positions based on this news should place a stop at the $47.00 level . Whole Foods could reach $54.19 to $57.00 before resistance levels are reached that are likely to slow down the current news based rally.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
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