Natural and Organic Works for Stocks Too
- Posted by Greg Harmon
- on August 29th, 2011
There are lots of break outs happening creating great trading opportunities. But having the healthy influence from my wife (her blog link is below) makes it good to see that the natural and organic stocks are set up well also. Hansen Natural (ticker: $HANS) broke higher last week, but looking at the chart below shows that it printed a very bullish Marubozu candle Monday after testing and
holding the breakout area Friday. It has a Relative Strength Index (RSI) that is trending higher and a Moving Average Convergence Divergence (MACD) indicator that is increasing. Now it looks free to head higher to the Inverse Head and Shoulders target of at least 95.56. Despite being at an all time high an entry here with a stop near 87 can still pay off smartly. Another player in this space, Whole Foods Market (ticker: $WFM) had a breakout Monday above resistance near 62.25 from 2 weeks ago. Printing a near Marubozu candle as well on top of long white candle Friday it looks
ready for more upside also. It has a rising RSI and MACD hat support it higher as well. Using the previous top in May at 63.60, which was also support for the July price action, as a stop this can be played long with a target of 68.00. But the one that is just getting ready is Hain Celestial Group (ticker: $HAIN). In the broad view below notice it broke below the 18 month rising channel in June
and failed on the retest in July. Since then it has been heading lower until early August. Since then the MACD bottomed and has been trending higher and the RSI has been rising as it is being drawn toward the Median Line of the Andrew’s Pitchfork. Zooming in below shows that is now in a resistance area between 31.75 and 32.25. Clearing that range opens it up to resistance higher at 33 followed by 33.90, coinciding with a cross of the Median Line, and 34.40 before testing the previous high over 36.50. Look to enter long on a break over 32.25.
So now not only can you live healthy but you can trade healthy too. Enjoy it!
Why Mother’s Get Fat via Body Acumen
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- SPY Trends and Influencers March 28, 2015
- Macro Week in Review/Preview March 27, 2015
- Trading the Ratio of Oil Servicers to Oil
- Trading 3 Black Crows, A Hammer and On Semiconductor
- Premium Earnings 3-26-15
- Crabs and Sharks in the Gold Chart: Update
- Designing a Spring portfolio improvement trade in Home Depot
- Premium Earnings 3-25-15
- First is the Worst, Second is the Best….
- Container Ship Stocks are Sailing Higher