Whole Food Markets in Wedge Consolidation

Whole Food Markets (WFM) stock price increased tenfold since April 2009 after the 50 day moving average crossed above the 200 day moving average. Those averages have not crossed back since the rally started but have seen several periods of compression associated with price contraction. The stock is currently in a two month period of wedge consolidation and there has been a significant contraction in the percent difference between the averages.

Whole Food Markets (WFM) Weekly Chart View Chart » View in New Window »

The weekly chart shows the recent sharp decline that has price moving into its lower Bollinger Band range and testing support at the 200 day moving average. Moving average convergence/divergence is tracking lower but above its centerline, and the relative strength indicator is reflecting the flat momentum. Volume and positive money flow have dropped off which is common during consolidation periods....132 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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