SPROUTS FARMERS MARKET INC is setting up nicely for a breakout.

Our stockscreener has identified a possible breakout setup on SPROUTS FARMERS MARKET INC (NASDAQ:SFM). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NASDAQ:SFM for potential opportunities.

Technical analysis of NASDAQ:SFM

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Overall SFM gets a technical rating of 8 out of 10. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• 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 89% of all other stocks. On top of that, SFM also shows a nice and consistent pattern of rising prices.
• SFM is one of the better performing stocks in the Consumer Staples Distribution & Retail industry, it outperforms 95% of 41 stocks in the same industry.
• 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 36.21 - 39.73 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.

Check the latest full technical report of SFM for a complete technical analysis.

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 9 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. There is a resistance zone just above the current price starting at 40.08. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 38.30, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NASDAQ:SFM

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 screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.