Will SPROUTS FARMERS MARKET INC breakout?

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.

Technical analysis of 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. Both in the recent history as in the last year, SFM has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that SFM is one of the better performing stocks in the market, outperforming 94% of all stocks.
• SFM is part of the Food & Staples Retailing industry. There are 46 other stocks in this industry. SFM outperforms 84% 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.
• In the last month SFM has a been trading in the 27.08 - 31.31 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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. Prices have been consolidating lately. There is very little resistance above the current price. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this 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.

More breakout setups can be found in our Breakout analyzer.