lowtrade

[lowtrade]

WFM

Island reversals take more then a few months, normally. Some thing bad caused the fall from grace and it takes time to gain back respect.

Chart wise you want to see the same volume in the fall, happen coming out of the island. If you don't see that, odds are it will top out at top resistance and form a long term channel.

For WFM I'd place a long alert @ 42.50 and expect it to be several more months before the company does appease the market for come back support.

Remember volume coming out is the key. Without strong volume every rise will reverse and continue along the channel. Many times the channel becomes the play while waiting. $37 to $42 not a bad channel to from and trade.

http://stockcharts.com/h-sc/ui?s=WFM&p=D&yr=0&mn=6&dy=0&id=p09784718131