Bearish DailyPlay for Tuesday Jan 24th, 2017 – Whole Foods (WFM)
The bearish DailyPlay we chose for Tuesday Jan 24th is Whole Foods (WFM). WFM is part of the Consumer Staples Sector (XLP). Over the last month, XLP has experienced a 0.98% move higher and its 1m/6m trend has remained bullish/neutral but has failed to reach new high’s at its $53 resistance level.
Whole Food’s 1m and 6m trends turned bearish on 1/23 while breaking below its 200D Moving Average and bounced lower off its $31.50 resistance level. With a technical score of 2 (out of 10), WFM looks positioned to continue this strong bearish trend lower.
As a stop loss, if WFM was to trade above $31.50 for multiple days, this would invalidate our analysis and suggest getting out of the trade.