Simple Trading Review WFM As Of Thursday 30 July 2015

WFM W 30 July 2015

Current Trend (W): Down

Abv/Below Value Zone: Below

Next Scheduled Report Date: Just reported 30 July 2015

52 Week High: $57.57

52 Week Low: $35.52

Current Relevant Resistance: $40 – $42

Current Relevant Support: $35.52

Recent Close: $36.08

Comment: I’ve written several times about WFM, most recently here.  When last I wrote about it (Motley Fool was suggesting it as 1 of 8 top stocks to buy in June) I said the stock was not only testing long term support and that failure looked imminent, but that it was an outright Sell (not a shortsell mind you… I don’t suggest rookies trouble themselves with all that).  Today the stock got taken out behind the wood shed.  The $40-$42 zone remains strong resistance, but I’m not thinking we will see that again anytime soon.  In terms of support, I don’t see any really coming in until around $30 and next around $26.  Then again, falling margins (due to lowering prices to meet competition) and slowing growth do not a good combination make… and in light of the response from co-ceo Mackay to the New York overcharging scandal

“We don’t think our track record is any different from any other supermarket,” he said. “We don’t know why Whole Foods was singled out for this attention …We don’t know why the media went wild with this.”

Really?  The co-ceo doesn’t know why a company that’s pinned its entire strategy in the persistently low margin supermarket area on being “different” (read better) than other supermarkets, is being treated differently?

Sell.