Screw the Stanford Study – Buy Organic, Stocks That Is
- Posted by Greg Harmon
- on September 20th, 2012
Two weeks ago Stanford threw cold water on the organic food industry stating no measurable difference with non-organic foods. You can read more about it at The Organic Brouhaha. Looking at the charts of the organic food stocks, the investing public at least seems to disagree. Hain Celestial, $HAIN, gapped higher after earnings and is holding the gap and United Natural Foods, $UNFI, is holding near its highs after reporting earnings. But two others, The Fresh Market, $TFM, and Whole Foods Markets, $WFM, look ready to move higher again. Take a look.
The Fresh Market, $TFM
The Fresh Market, $TFM, fell back after reporting earnings but has been holding support at the rising trendline near the 50 day Simple Moving Average (SMA). With the Relative Strength Index (RSI) holding in bullish territory and moving back higher and the Moving Average Convergence Divergence indicator (MACD) about to cross bullishly to positive, it is ripe to move back higher. Look for a move over 59 as an entry with a Measured Move higher then to 68.
Whole Foods Markets, $WFM
Whole Foods Markets, $WFM, gapped higher after its last earnings report in late July and has been on a slow grind higher. The last 2 weeks has seen consolidation under resistance at 98.50 but a break out higher Wednesday is now pushing it higher to an initial target of 100.50 and continuation beyond. In fact the 3-box reversal Point and Figure chart (PnF) has a price objective of 134. A continued hold over 97.50 should keep you long.
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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)
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