Turn Around For Whole Foods (NASDAQ: WFMI) ? Asks Market Timer Frank Kollar
August 2, 2007 (FinancialWire) (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 offering organic food items.
Whole Food’s decline has reached the correction lows of August 2004. We have been watching these lows as a possible bottom and sure enough Whole Foods has reversed and on Wednesday rallied almost 7%. Is it time to buy?
This is not the first time Whole Foods has reacted strongly to the upside and over the past two years every rally has been followed by lower lows. We are watching the $43 level as possible rally confirmation. A lot depends on how Whole Foods acts as it climbs to that level, but it is the Fib 61.8 retracement level of the April-July decline. If surpassed, we may see higher highs in this stock’s future.
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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