By Mill Chart
Last update: May 26, 2023
A possible breakout setup was detected on SPROUTS FARMERS MARKET INC (NASDAQ:SFM) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:SFM.
Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.
We assign a technical rating of 9 out of 10 to SFM. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, SFM is showing a nice and steady performance.
Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:SFM currently has a 8 as setup rating:
Besides having an excellent technical rating, SFM also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 34.85, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for SFM in the last couple of days, which is a good sign.
For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.
This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.
Our Breakout analyzer lists more breakout setups and is updated daily.
SPROUTS FARMERS MARKET INC
NASDAQ:SFM (5/25/2023, 7:08:29 PM)
After market: 36.0901 0 (0%)36.09
-0.11 (-0.3%)
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PHOENIX, May 01, 2023 (GLOBE NEWSWIRE) -- Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week first quarter ended April 2,...