Whole Foods Market Technical Analysis (NASDAQ:WFM)
Technical analysis is the study of stock price and volume data through technical charts. This analysis does not take into account the intrinsic value of a stock. Just by looking at the Whole Foods Market stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the WFM stock chart which creates a trading signal.
View technical indicators like moving averages - SMA and EMA, and bollinger bands for Whole Foods Market. The technical analysis form of Whole Foods Market stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Whole Foods Market Moving Average
Moving averages help predict the price direction of WFM stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The 20 day moving average of $41.82 is below the last closing price of $41.99 and the 50 day moving average of $42.01 is above the last closing price of $41.99. The 10 and 20 day periods can predict short term moving average trends.
Whole Foods Market Bollinger Bands
Bollinger bands comprise of a center line usually WFM SMA, and two WFM stock price bands above and below it. The stock is considered overbought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. The stock price is trading between the average and the upper band in the context of Whole Foods Market bollinger bands.
Whole Foods Market Moving Average Convergence Divergence or MACD
Two important concepts with respect to moving average convergence divergence or MACD are: crossovers and divergence. When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The Whole Foods Market MACD indicator can be used to identify bullish and bearish trends for the stock.
Whole Foods Market Relative Strength Index
The relative strength index compares the magnitude of recent gains to recent losses and is a momentum indicator. It attempts to assess overbought and oversold conditions of a stock. 60 is the RSI value of WFM stock.