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NASDAQ:SFM may be ready to breakout.

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.

SFM Daily chart on 2023-05-26

What is the technical picture of NASDAQ:SFM telling us.

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.

  • The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
  • Looking at the yearly performance, SFM did better than 94% of all other stocks. On top of that, SFM also shows a nice and consistent pattern of rising prices.
  • SFM is part of the Consumer Staples Distribution & Retail industry. There are 49 other stocks in this industry. SFM outperforms 97% of them.
  • SFM is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so SFM is performing more or less in line with the market.

How does the Setup look for NASDAQ:SFM

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.

Trading setups like NASDAQ:SFM

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.

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SPROUTS FARMERS MARKET INC

NASDAQ:SFM (6/12/2024, 3:30:02 PM)

After market: 75.23 0 (0%)

75.23

-0.41 (-0.54%)

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